“Many financial economists have tried to understand why markets have performed so badly and traditional financial policies have been so ineffectual in preventing and attenuating the current crisis. This is a timely volume written by an internationally diverse group of economists. Its focus is on banking and international finance, corporate finance and investments with a wide range of institutional perspectives and diversity of data. The book emphasizes how the particulars of asymmetric information create moral hazard and adverse selection problems that can undermine the efficiency of markets and financial policy, and makes the case for factoring such considerations into any models that are intended to guide policy.”
Jacob Safra Professor of International Banking
Co-Director of the Wharton Financial Institutions Center
The Wharton School, University of Pennsylvania
“This book is a unique collection of articles about the current financial crises from a global perspective, rather than evaluating selected aspects of it from strictly a U.S. point of view. It is written for readers who are familiar with financial concepts such as asymmetric information, corporate governance, leveraged buyouts, and value-at-risk.”
Chair of Banking
University of Alabama