1 How to Think about Finance

Chapters in this book

1. Frontmatter i
2. Contents v
3. Foreword vii
4. Introduction: The New Economics of Debt and Financial Fragility 1
5. Part one. Finance Unbound: The Rise of Finance and the Economy
6. 1 How to Think about Finance 15
7. 2 Reconsidering the Costs and Benefits of Debt Booms for the Economy 32
8. Part two. Risk-Taking: Incentives, Investors, Institutions
9. 3 Are Bank CEOs to Blame? 57
10. 4 A New Narrative of Investors, Subprime Lending, and the 2008 Crisis 79
11. 5 Bank Capital before and after Financial Crises 116
12. Part three. Mispricing Risks: Credit Booms and Risk Premia
13. 6 Beliefs and Risk-Taking 137
14. 7 A New Approach to Measuring Banks’ Risk Exposure 165
15. 8 Is Risk Mispriced in Credit Booms? 187
16. Part four. Financial Crises: Reconsidering the Origins and Consequences
17. 9 Historical Banking Crises: A New Database and a Reassessment of Their Incidence and Severity 207
18. 10 Was the U.S. Great Depression a Credit Boom Gone Wrong? 233
19. 11 Sectoral Credit Booms and Financial Stability 270
20. Index 299