米貨幣銀行學(xué)課件師家升

1、Chapter 8An Economic Analysis of Financial Structure2Sources of External Finance in U.S.A3Sources of Foreign External Finance4Puzzles of Financial Structure1.Stocks are not most important source of external finance for businesses2.Issuing marketable securities not primary funding source for business

2、es3.Indirect finance (financial intermediation) is far more important than direct finance4.Banks are most important source of external finance5.Financial system is among most heavily regulated sectors of economy6.Only large, well established firms have access to securities markets7.Collateral is pre

3、valent feature of debt contracts8.Debt contracts are typically extremely complicated legal documents with restrictive covenants5Transaction Costs and Financial StructureTransaction costs hinder flow of funds to people with productive investment opportunitiesFinancial intermediaries make profits by r

4、educing transaction costs1.Take advantage of economies of scaleExample: Mutual Funds2.Develop expertise to lower transaction costsExplains Puzzle 36 Adverse Selection and Moral Hazard: DefinitionsAdverse Selection:1.Before transaction occurs2.Potential borrowers most likely to produce adverse es are

5、 ones most likely to seek loans and be selectedMoral Hazard:1.After transaction occurs2.Hazard that borrower has incentives to engage in undesirable (immoral) activities making it more likely that wont pay loan back7Adverse Selection and Financial StructureLemons Problem in Securities Markets1.If ca

6、nt distinguish between good and bad securities, willing to pay only average of good and bad securities values.2.Result: Good securities undervalued and firms wont issue them; bad securities overvalued, so too many issued.3.Investors wont want to buy bad securities, so market wont function well.Expla

7、ins Puzzle 2 and Puzzle 1.Also explains Puzzle 6: Less asymmetric information for well known firms, so smaller lemons problem8 Tools to Help Solve Adverse Selection Problem1.Private Production and Sale of InformationFree-rider problem interferes with this solution2.Government Regulation to Increase

8、InformationExplains Puzzle 53.Financial IntermediationA.Analogy to solution to lemons problem provided by used-car dealersB.Avoid free-rider problem by making private loansExplains Puzzles 3 and 44.Collateral and Net WorthExplains Puzzle 79Moral Hazard: Debt versus EquityMoral Hazard in Equity:Princ

9、ipal-Agent Problem1.Result of separation of ownership by stockholders (principals) from control by managers (agents)2.Managers act in own rather than stockholders interestTools to Help Solve the Principal-Agent Problem1.Monitoring: production of information2.Government regulation to increase informa

10、tion3.Financial intermediation4.Debt contractsExplains Puzzle 1: Why debt used more than equity10Moral Hazard and Debt MarketsMoral hazard: borrower wants to take on too much riskTools to Help Solve Moral Hazard1.Net worth2.Monitoring and enforcement of restrictive covenants3.Financial intermediatio

11、nBanks and other intermediaries have special advantages in monitoringExplains Puzzles 14.11Summary: Asymmetric Information Problems and Tools to Solve Them12Financial Development and Economic GrowthFinancial Repression Leads to Low Growth: Why? 1. Poor legal system 2. Weak accounting standards 3. Go

12、vernment directs credit Governments are not driven by the profit motive 4. Financial institutions nationalized again absence of the profit motive 5. Inadequate government regulation13Financial Crises Financial Crises occur when there are major disruptions in financial markets that are characterized

13、by sharp declines in asset prices and the failures of many financial and nonfinancial firms. The united States experienced major financial crises in 1819,1837,1857,1873,1884,1893,1907,1930-1933; and close call of the October 1987Financial Crises141516Financial CrisesFactors Causing Financial CrisesS

14、harp increase in adverse selection and moral hazard1. Increase in interest rates2. Increases in uncertainty3. Asset market effects on balance sheetsStock market effects on net worthUnanticipated deflationCash flow effects4. Bank panics contagion5.Government fiscal imbalances17Events in U.S. Financia

15、l Crises18Events in Mexican, East Asian, and Argentine Financial Crises19The Government Safety NetThere are three reasons for the government to get involved in the financial system to protect investors.to protect bank customers from monopolistic exploitation.to ensure the stability of the financial system 20The Government Safety Netthe lender of last resort an institution would be capable of making loans to