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International Finance Discussion Papers: International Capital Flows and the Returns to Safe Assets in the United States, 2003-2007

A broad array of domestic institutional factors–including problems with the originate-to-distribute model for mortgage loans, deteriorating lending standards, deficiencies in risk management, conflicting incentives for the GSEs, and shortcomings of supervision and regulation–were the primary sources of the U.S. housing boom and bust and the associated financial crisis. In addition, the extended rise in U.S. house prices was likely also supported by long-term interest rates (including mortgage rates) that were surprisingly low, given the level of short-term rates and other macro fundamentals–a development that Greenspan (2005) dubbed a “conundrum.” The “global saving glut” (GSG) hypothesis (Bernanke, 2005 and 2007) argues that increased capital inflows to the United States from countries in which desired saving greatly exceeded desired investment–including Asian emerging markets and commodity exporters–were an important reason that U.S. longer-term interest rates during this period were lower than expected.

Author: Ben S. Bernanke

Binding: Paperback

EAN: 9781288724581

Condition: New

Manufacturer: BiblioGov

Number of items: 1

Number of pages: 42

Product group: Book

Studio: BiblioGov

Publication Date: 2013-02-06

Publisher: BiblioGov

Pages: 42

ISBN: 1288724586

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Ben Bernanke
Ben S. Bernanke is a Distinguished Fellow in Residence with the Economic Studies Program at the Brookings Institution. From February 2006 through January 2014, he was Chairman of the Board of Governors of the Federal Reserve System. Dr. Bernanke also served as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. He is also the author of The Courage to Act.