Dimensions
162 x 234 x 24mm
Henry Kaufman takes us back to the early 1960s, when the financial restraint of the postwar environment began to change, one almost imperceptible step at a time, when the Federal Reserve began to allow commercial banks to issue large denominated negotiable certificates of deposit up to an imposed interest rate ceiling. The implications of this new policy - essentially the opening wedge for further forms of regulatory liberalization mixed with the credit instruments introduced soon after - went unforseen by Fed officials.
Financial Upheaval explains to readers the steps thereafter, such as the erosion of credit ratings on corporate debt in the late 1980s, the rapid increase in financial concentration of institutions, and the blinding faith in models that rely on historical data but fail to take into account economic and financial market structural changes. With his breadth of knowledge and experiences, Kaufman shows readers how we created this history-making financial crisis, the consequences still to come, and how we begin to recover.
