Restoring Financial Stability: How to Repair a Failed System (Wiley Finance)
An insightful look at how to reform our broken financial system
The financial crisis that unfolded in September 2008 transformed the United States and world economies. As each day's headlines brought stories of bank failures and rescues, government policies drawn and redrawn against the backdrop of an historic Presidential election, and solutions that seemed to be discarded almost as soon as they were proposed, a group of thirty-three academics at New York University Stern School of Business began tackling the hard questions behind the headlines. Representing fields of finance, economics, and accounting, these professors-led by Dean Thomas Cooley and Vice Dean Ingo Walter-shaped eighteen independent policy papers that proposed market-focused solutions to the problems within a common framework. In December, with great urgency, they sent hand-bound copies to Washington. Restoring Financial Stability is the culmination of their work.
Proposes bold, yet principled approaches-including financial policy alternatives and specific courses of action-to deal with this unprecedented, systemic financial crisis
Created by the contributions of various academics from New York University's Stern School of Business
Provides important perspectives on both the causes of the global financial crisis as well as proposed solutions to ensure it doesn't happen again
Contains detailed evaluations and analyses covering many spectrums of the marketplace
Edited by Matthew Richardson and Viral Acharya, this reliable resource brings together the best thinking of finance and economics from the faculty of one of the top universities in world.
Best Book on Crisis So Far
By Samuel J. Sharp - May 10, 2009
I read this book immediately after I finished Cooper's The Origin of Financial Crises which was highly recommended by the usually trustworthy Economist. For several reasons, Restoring Financial Stability (RFS) is the best book on the current crisis by a long ways. I am shocked that there is only one Amazon review so far.
RFS is neither dumbed-down nor overly complex. Anyone who reads the Wall Street Journal or Financial Times will easily grasp the material covered and the language being used. The sources cited for the individual essays are predominately articles from academic journals but the authors of RFS do a nice job of summarizing the important points from these articles rather than assuming the reader is familiar with the sources. I am a history major and had no trouble following the authors.
You do not need to be interested in the solutions proposed in order to buy the book. The policy recommendations are brief and follow the much more important background... read more
Forest vs Trees
By EWC - June 13, 2009
Restoring Financial Stability is the best book I've read on the crisis so far. It is filled with valuable data. It covers many different aspects of the situation. And, for the most part, it is even handed in its criticisms, never resorting to the many highly biased political explanations. But from my perspective it falls short on several counts.
Most importantly, this crisis was clearly a supply driven phenomena. It's not as though the demand for housing drove up the price of financing - quite the opposite. A worldwide excess of short-term funding drove up the price of assets. Gladly, the book does not resort to the trite argument that the Fed inflated the money supply by lowering short-term interest rates following the 2002 recession, as M2/GDP fails to convincingly confirm much if any monetary inflation. Instead, the book unfortunately makes no account of the source of this funding whatsoever. It never even crosses its radar screen. I would say that misses the forest from... read more
Outstanding resource and guide
By Christopher Myrick "Chris Myrick" - April 16, 2009
NYU Stern has put together a tremendous, comprehensive and timely guide to the ongoing financial crisis. The book superbly summarizes the roots of the crisis, the scale of the problems across the financial sector and possible public policy solutions in a clear and non-partisan manner. This is a volume that I hope finds its way to the desks of every policy maker and politician - both in the US and abroad. I would also strongly recommend this to everyone involved in banking or finance (including, and perhaps particularly, financial journalists).
For those interested in the text's contents, Stern has a fantastic site featuring on-line resources including video of the book-launch conference and executive summaries of each of the book's chapters ( http://whitepapers.stern.nyu.edu/home.html )