Economic History Commons^™

Spain: Caja De Ahorros Castilla–La Mancha Emergency Liquidity Assistance, 2009, Vincient Arnold, Lakshimi Swaminathan

Journal of Financial Crises

Following years of rapid credit expansion in the real estate sector and reliance on wholesale funding between 2000 and 2008, Caja de Ahorros de Castilla–La Mancha (CCM) found itself on the brink of insolvency in early 2009. Normally, a Eurosystem bank in CCM’s position would turn to the European Central Bank (ECB) to obtain liquidity through its standing financing facilities, but CCM lacked eligible collateral to tap them. Consequently, in February 2009, the Bank of Spain (BoS) provided emergency liquidity assistance (ELA) of EUR 900 million to CCM, secured against CCM assets, to help meet its liquidity needs. In March, …

Russia: Otkritie Emergency Liquidity Program, 2017, Benjamin Hoffner

Journal of Financial Crises

In July and August 2017, Otkritie Bank, Russia’s largest privately owned bank, experienced deposit runs related to concerns over Otkritie’s recent acquisitions, including a large, troubled bank and insurance company. The runs prompted Otkritie to heavily rely on the Central Bank of Russia’s (CBR’s) standing fixed-rate repurchase agreement (repo) facility to meet the outflow. By July, Otkritie had RUB 338.1 billion in outstanding repo loans from the CBR. As depositors continued to withdraw funds in August, the CBR provided Otkritie with an unsecured emergency loan of RUB 330 billion while Otkritie continued to borrow from the repo facility. On August …

Moldova: Consortium Of Banks Emergency Liquidity Program, 2014, Vincient Arnold

Journal of Financial Crises

In the fall of 2014, a bank fraud involving illegal loans and transfers resulted in USD 1 billion being stolen from the government of Moldova, which amounted to more than an eighth of Moldova’s GDP. In September 2014, it became clear to the National Bank of Moldova (NBM) that the banks involved in the fraud—Banca de Economii, Banca Sociala, and Unibank—were deeply insolvent and had been hiding that fact from regulators. In late November, the NBM issued 9.4 billion Moldovan lei (MDL; USD 640 million) in emergency credit to the banks at an interest rate of 10 basis points against …

Latvia: Parex Bank Emergency Liquidity Program, 2008, Bailey Decker

Journal of Financial Crises

Heading into the Global Financial Crisis, JSC Parex banka was Latvia’s second-largest bank in terms of assets, comprising 13.8% of total assets in the Latvian banking sector. In autumn 2008, Parex faced a capital shortfall owing to massive credit and market losses in addition to liquidity problems and deposit runs of 240 million Latvian lats (LVL; USD 428.6 million). Parex had two senior syndicated loans maturing in February and June 2009, totaling EUR 775 million (USD 992 million). Latvian authorities said they doubted that Parex would be able to pay back, extend, or replace these loans. Authorities intervened at the …

Italy: Banco Ambrosiano Emergency Liquidity Program, 1982, Kopal Ardimento

Journal of Financial Crises

On June 14, 1982, prompted by the disappearance of Banco Ambrosiano (BA) CEO Roberto Calvi, the Bank of Italy opened an investigation into BA, which revealed to the market BA’s 1.9 trillion–2.2 trillion Italian lire (ITL; USD 1.4 billion–USD 1.6 billion) in questionable foreign loans. The Treasury Ministry deemed intervention necessary because BA’s collapse would compromise the credibility of the Italian banking system abroad. Attempts to appeal to the Vatican Bank to honor guarantees it had made against these foreign loans failed. The Bank of Italy worried that runs on deposits would further impair BA while authorities explored alternatives to …

Ireland: Anglo Irish Bank Emergency Liquidity Assistance, 2009, Salil Gupta, Mahdi Khairallah, Nik Adlina Nik Moktar

Journal of Financial Crises

At the height of the Global Financial Crisis in September 2008, Anglo Irish Bank (Anglo), one of Ireland’s six core banks, specializing in commercial and residential real estate with EUR 101.3 billion in assets, faced severe losses. Irish authorities announced a blanket deposit and liability guarantee for the six banks including Anglo. At the same time, Anglo was offered standby liquidity facilities of EUR 3 billion from the Central Bank of Ireland (CBI) and EUR 10 billion from the two largest Irish commercial banks, which were not drawn on at the time. Anglo was nationalized in January 2009, as deposit …

Indonesia: Bank Century Emergency Liquidity Program, 2008, Vincient Arnold

Journal of Financial Crises

By the autumn of 2008, the effects of the Global Financial Crisis of 2007–2009 had struck Indonesia, as liquidity in interbank markets dried up, capital flows reversed, and economic growth slowed. On October 30, 2008, Bank Indonesia—the central bank of Indonesia—passed Regulation No. 10/26/PBI/2008, establishing a Short-Term Funding Facility for Commercial Banks (SFF). On October 31, 2008, the capital adequacy ratio of Bank Century, a relatively small Indonesian bank, was –3.35%. On November 14, 2008, after Bank Century failed to conduct payment clearing the day before, Bank Indonesia approved Bank Century for access to the SFF and began disbursements of …

Iceland: Kaupthing Emergency Liquidity Program, 2008, Sophia Alden, Léo Brougher

Journal of Financial Crises

Following the privatization of Iceland’s state-owned banks between 1998 and 2003, the three largest banks in Iceland—Glitnir, Landsbanki, and Kaupthing—grew rapidly, with consolidated assets increasing from 100% of Iceland’s GDP in 2004 to nearly 900% by the end of 2007. Initially, this growth was funded by debt issuances in the European medium-term note market; however, as cracks in the international financial system appeared in 2006, the banks turned to offering high-interest savings accounts through their foreign subsidiaries. Beginning in October 2006, Kaupthing launched “Kaupthing Edge,” an online savings and deposit platform operating in markets outside Iceland. When the United States …

Germany: Ikb Deutsche Industriebank Emergency Liquidity Program, 2008, Ayodeji George, Sophia Alden

Journal of Financial Crises

In the summer of 2007, IKB Deutsche Industriebank (IKB) faced heavy losses owing to the liquidity support it had provided on commercial paper issued by Rhineland Funding Capital Corporation, its off-balance-sheet vehicle, which held distressed collateralized debt obligations backed by US subprime mortgages. In July 2007, authorities became aware that IKB itself had lost access to liquidity from Deutsche Bank and other funding partners. Publicly owned development bank Kreditanstalt für Wiederaufbau (KfW) held a 38% stake in IKB, exposing it to potentially heavy losses in the event of an IKB failure. KfW, German financial authorities, and German banks pursued a …

Denmark: Roskilde Bank Emergency Liquidity Program, 2008, Bailey Decker

Journal of Financial Crises

Roskilde Bank A/S (Roskilde) was the eighth-largest bank in Denmark at the time of the Global Financial Crisis, with approximately 43 billion Danish kroner (DKK; USD 9.1 billion) in consolidated assets as of March 2008. Roskilde had considerable exposure to real estate and construction firms, prompting ratings downgrades and larger write-downs than expected in July 2008. On July 10, 2008, Roskilde asked for liquidity assistance from the Danish central bank, Danmarks Nationalbank (DNB). Later that day, DNB and the banking sector’s self-insurance group, the Private Contingency Association (PCA), announced emergency liquidity assistance to Roskilde in the form of an unlimited …

Cyprus: Laiki Bank Ad Hoc Emergency Liquidity Assistance, 2011, Stella Schaefer-Brown

Journal of Financial Crises

Following the European Union’s decision to restructure Greek debt in October 2011, Laiki Bank’s depositors began to withdraw their funds from the bank in growing numbers after it reported that its portfolio of Greek government bonds had lost EUR 2.3 billion in value. Beginning October 2011 and lasting until the bank’s resolution in 2013, Laiki Bank requested and received emergency liquidity assistance (ELA) from the Central Bank of Cyprus (CBC) so that the bank could continue to fund itself as depositors withdrew their funds. In June 2012, Cypriot authorities recapitalized Laiki Bank, and the government became an 84% shareholder. From …

Canada: Canadian Commercial Bank Emergency Liquidity Program, 1985, Adam Keanie, Léo Brougher

Journal of Financial Crises

In March 1985, the Canadian Commercial Bank (CCB)—Canada’s 10th largest bank, with CAD 2.9 billion in assets—reported to the Office of the Inspector General of Banks (OIGB) and the Bank of Canada (BoC) that CCB would not survive owing to large losses on its United States energy loans portfolio. In response, the BoC assembled an emergency CAD 255 million rescue package, secured through contributions from a consortium composed of the federal government, the provincial government of Alberta, the Canadian Deposit Insurance Corporation, and Canada’s six largest banks. Despite the BoC’s reassurances, including a public announcement promising virtually unlimited liquidity support, …

Ad Hoc Emergency Liquidity Programs In The 21st Century, Steven Kelly, Vincient Arnold, Greg Feldberg, Andrew Metrick

Journal of Financial Crises

This paper surveys 22 case studies of 21st century instances when financial crisis-fighters implemented ad hoc emergency liquidity (AHEL) interventions, interventions designed to provide liquidity to a troubled institution that the authorities believe is systemically important. While emergency liquidity support is often introduced with the real or communicated intention of preventing illiquidity from leading to insolvency, the liquidity crisis should instead be viewed as the manifestation of the market’s assessing the firm as nonviable as a going concern. For that reason, authorities should provide AHEL assistance only to institutions that they have deemed viable or that they have committed to …

Brazil: Banco Btg Pactual Emergency Liquidity Program, 2015, Vincient Arnold

Journal of Financial Crises

On November 25, 2015, André Esteves, then CEO of Banco BTG Pactual, a large Brazilian investment bank, was arrested by Brazilian authorities in connection with suspected involvement in a corruption scandal. Although the arrest did not involve BTG in any capacity and Esteves was later acquitted, the company’s stock quickly collapsed and depositors and other creditors rushed to reduce their exposures to the company. Depositors withdrew certificates of bank deposits, which BTG relied on to fund its daily operations. By November 27, BTG shares had fallen 26%. On December 2, the top seven shareholders of BTG took control of the …

Fighting "Fear Itself": The Bank Holiday Of March 1933, Matthew Jaremski, Gary Richardson, Angela Vossmeyer

Journal of Financial Crises

In the month preceding Franklin Roosevelt’s inauguration, a panic overwhelmed the U.S. banking system. Immediately after assuming office, Roosevelt declared a nationwide bank holiday and vowed to reopen only sound banks. Five days after the holiday ended, nearly 11,000 of the nation's more than 18,000 commercial banks had reopened. Nearly 4,000 never reopened or had to be reorganized. The holiday is often credited with helping reestablish financial stability, but little is known about the mechanisms underlying the reopening process and the way in which payment systems were restored. We detail the process of reopening the banking system using narrative records …

Navigating Modernity: Political And Economic Shifts In The Nineteenth Cenutry, Austin Delsontro, Andrew Cox

Chronicles: Journal Of History

No abstract provided.

21st Century Monetary Policy: The Federal Reserve From The Great Inflation To Covid-19, Greg Arburn

The Journal of Economics and Politics

No abstract provided.

Working Paper No. 87, The Double-Edged Sword Of American Philanthropy, Nathan Lewis-Lusso

Working Papers in Economics

This inquiry seeks to establish that American philanthropy, often hailed as a moral virtue, is in part a reflection of systemic policy failures that have forced private individuals to address public needs. While one blade of the philanthropic sword has historically provided essential support in areas such as education, healthcare, and poverty alleviation, the other blade of the sword has also allowed for wealthy individuals to shape public priorities, often reinforcing existing inequalities. By analyzing the historical development of philanthropy, its role in addressing policy gaps, and its potential in undermining democratic governance, this inquiry highlights the complex and often …

The Theoretical Consequences Of Mr. Churchill Gold Standard Policy And The ‘Long Struggle Of Escape’, Nathaniel Cline, Matias Vernengo

Working Papers

No abstract provided.

Economic Inequality And Civil War In Yugoslavia: An Economic Historiography Of Civil War, Farah Swellam

The Undergraduate Research Journal

The reasons for the emergence of ethnic violence are a much-debated and controversial topic. It remains relevant in a world with increasingly heterogeneous nation-states. This article investigates the causes of ethnic violence in Yugoslavia by analyzing the history of the republic from its post-WWII formation to the beginning of its breakup in 1991. The paper uses a qualitative examination of the causes and consequences of economic and political policies to understand the mechanisms by which ethnic heterogeneity is transmitted into violence. It argues that economic inequality is a necessary underlying variable to explain the outbreak of ethnic violence and civil …

From Colony To Classroom: British Rule And Contemporary Educational Outcomes In India, Yashvita Shukla

Honors Theses

This study analyzes the modern day legacy of British colonial ruling structures on Indian educational outcomes. In directly ruled areas, the British retained total control, while Indian princes in indirectly ruled areas had administrative agency. I find that directly ruled districts have higher literate population shares across both genders over three census years, but no significant difference by 2011 in primary, secondary, and tertiary education, controlling for colonial geographic conditions. Gender-disaggregated results generally find stronger colonial effects for women than men. This thesis challenges earlier findings and implies that the British effort to create an educated administrative class and their …

The Paradox Of Value, David Enrique Guarnizo

Theses and Dissertations

The present thesis project examines how, in the United States, and especially in the state of Virginia, archetypes of "wealth," "value," and "identity" have been constructed in relation to land and territory. This analysis explores the tension between the inherent value of life on the land and the economic value that can be derived from it. This tension is exemplified by a theory known as the "paradox of value", also referred to as the "paradox of water and diamonds", which was developed by the renowned Scottish economist and philosopher, Adam Smith. This theoretical framework serves as a fundamental axis for …

Deportations And Debt: How The Trump Administration’S Immigration Policies Affect The United States’ National Debt Situation, James D. Webster

Honors Theses and Capstones

The value of the United States’ national debt measured as a share of its economic output, otherwise known as its debt-to-GDP ratio, is projected to reach an all-time high and continue to climb over the span of the next 30 years. This can be attributed to a combination of tax and spending policies which generate annual budget deficits as well as a projected slowdown of economic growth. A major factor contributing to this situation is the slowing growth of the labor force in the United States. As time goes on, the growth of the U.S. population slows, and immigration becomes …

Institutionalisation And Institutional Evolution: A Model Of Selecting Government Officials In Ancient China, Haiwen Zhou

Economics Faculty Publications

The evolution of institutions in selecting government officials in ancient China reflected efficiency considerations and increased power concentration in the hands of the ruler. Selecting government officials in ancient China became more rule‐based over time, and standardisation and centralisation were some key features of this process. In this dynamic model, a higher volume of transactions, shown as the number of candidates needed to be evaluated, leads to institutionalisation, which has a higher fixed cost but a lower marginal cost in processing each transaction. In the steady state, a ruler with a more encompassing interest chooses a higher level of institutionalisation. …

Impact Of Geography On Institutions In Agricultural And Nomadic Societies, Haiwen Zhou

Economics Faculty Publications

How geography affects the choice of institutions is studied in a theoretical model. In this model, nations are located around a circle. Rulers compete through choosing tax rates, the level of military spending, and the degree of formality of institutions. Geographic condition is captured by population density. It is shown that societies with higher population densities choose lower tax rates, establish more formal institutions, and give government officials lower levels of autonomies than those with lower population densities do. A higher level of external threats induces a ruler to choose a higher level of autonomy for officials. The model is …

Synthetic Statocracy - Pakistan’S Self-Created Inferno: Examining The Causes And Consequences Of Military Dominance In Pakistan, Umer Lakhani

CMC Senior Theses

This paper examines the history of military rule in Pakistan. Applying the framework of Johannes Gerschewski in The Three Pillars of Stability: Legitimation, Repression and Co-Optation in Autocratic Regimes, this paper looks to explain how military rulers who presided over the three periods of military rule in Pakistan consolidated and maintained their power, as well as the effects that these periods of rule had on Pakistani society. This paper will also supplement Gerschewski’s general framework by applying the findings of various established authors who have been published extensively on Pakistan’s political history, economy and relationship with the military. Such authors …

Art As Asset: The Rise Of The Financialized Art Market And The Abstraction Of Value, Kenneth Knothe

Pitzer Senior Theses

This thesis investigates the financialization of art through the expanding use of art-backed loans and institutional involvement. It focuses on how artworks—once primarily valued for their aesthetic or cultural significance—are now routinely treated as financial assets within the art market. The paper uses case studies from Sotheby’s Financial Services and Mitchell F. Chan’s blockchain-based reinterpretation of Yves Klein’s Zones of Immaterial Pictorial Sensibility. Drawing on the work of Walter Benjamin, Pierre Bourdieu, and Wendy Brown, it argues that this shift undermines museums’ roles as cultural stewards and redefines the meaning of value in the art world to something more quantifiable. …

An Economic And Production Analysis Of Seaweed Farms In California And The Pacific Northwest, Brian Donovan

Cal Poly Humboldt theses and projects

Since the early 2010s, the seaweed aquaculture industry has steadily expanded in the United States, with states like Alaska, Maine, Hawaii, and Connecticut leading the way in the development of this emerging sector. However, information gaps remain concerning certain aspects of the domestic seaweed aquaculture industry. The purpose of this study was to examine the status of the seaweed aquaculture industry along the West Coast of the United States; specifically in the states of California, Oregon, and Washington. Seaweed farmers in these states were invited to voluntarily complete surveys asking important production, economic, and commercial questions regarding their operations. Data …

When Consumers See It Coming: How Anticipation Affects The Domestic Cost Of Tariffs, Pierce D. Sanderson

CMC Senior Theses

Tariffs implemented by President Trump in 2018 were unexpected and significant, incurring large costs to U.S. consumers. This study examines the effect of tariff anticipation on price, quantity, and value effect on imports in the United States. Specifically, it focuses on tariffs implemented during Obama’s second term in office from 2012 to 2016 on the automotive, technology, and manufacturing industries. The findings present a significant divergence from the literature on the effects of 2018 tariffs, finding a near full pass-through of tariffs to foreign exporter prices rather than U.S. consumers. Specifically, a one percent increase in tariffs resulted in a …

Truth, Reconciliation, And Neoliberalism: Remembering And Forgetting Pinochet’S Chile, Aimee Leigh Gallagher

History - Master of Arts in Teaching

I. Synthesis Essay………………..................4

III. Primary Documents and Headnotes.....26

IV. Textbook Critique……………….............36

V. Textbook Entry…………………………....42