The October 2014 issue finds that six years after the start of the crisis, the global economic recovery continues to rely heavily on accommodative monetary policies in advanced economies. Monetary accommodation remains critical in supporting economies by encouraging economic risk taking in the form of increased real spending by households and greater willingness to invest and hire by businesses. However, prolonged monetary ease may also encourage excessive financial risk taking. Analytical chapters examine (1) the growth of shadow banking around the globe, assessing risks and discussing regulatory responses, and calling for a more encompassing (macroprudential) approach to regulation and for enhanced data provision; and (2) how conflicts of interest among bank managers, shareholders, and debt holders can lead to excessive bank risk taking from societyas point of view, finding no clear relation between bank risk and the level of executive compensation, but that a better alignment of bankersa pay with long-term outcomes is associated with less risk.Nonfinancial Corporations: Leverage and Spreads ...but corporate leverage has risen and credit spreads no longer follow ... Note: Pink bars indicate National Bureau of Economic Research recession dates. ... 2011 2012 2013 2014 Sources: Bank of America Merrill Lynch; Bloomberg L.P.; Haver Analytics; JPMorgan Chaseanbsp;...
|Title||:||Global Financial Stability Report, October 2014:|
|Author||:||International Monetary Fund. Monetary and Capital Markets Department|
|Publisher||:||International Monetary Fund - 2014-10-08|