Courses Infomation

Why Are There So Many Banking Crises by Jean Charles Rochet

Reviews:

“Among economists’ explanations are moral hazard, ill-judged capital adequacy rules and the incompetence of supervisors. Jean-Charles Rochet, a leading authority on banking, argues the real problem lies with politicians who too often insist on rescuing insolvent banks for short-term reasons of their own. [W]hatever the verdict on the policy proposals, the book makes interesting reading in current circumstances.”–John Plender, Financial Times

“The book provides an excellent introduction to the theory of banking regulation. . . . I can recommend the book to anyone interested in a formal, academic approach to banking regulation. The concise conclusions of the individual articles provide valuable ideas for changes in banking regulation.”–Bernd Brommundt, Financial Markets and Portfolio Management

Endorsements:

“Jean-Charles Rochet is one of the dedicated ‘audacious pioneers’ who have attempted to dissect with rigor, precision, and creativity some of the most elusive issues of financial (in)stability. It is pleasing to see his work presented in a unified, clear, and well-written form. A testament to his formidable contributions and remarkable insights, this book will guide researchers and students, as well as practitioners, into the future.”–Dimitrios P. Tsomocos, Said Business School, University of Oxford

“Why are there so many banking crises? One answer is that so few economists of Jean-Charles Rochet’s caliber have worked on the problem. Combining analytical and technical abilities, institutional knowledge, clear writing, and common sense to an outstanding degree, Rochet has produced a book that will benefit everyone who reads it.”–Charles Goodhart, London School of Economics and Political Science

“This collection of important papers by Jean-Charles Rochet, one of the leading theoreticians of banking, should generate great interest.”–George Kaufman, Loyola University Chicago

What is forex?

Quite simply, it’s the global market that allows one to trade two currencies against each other.

If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit.

If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting.

Foreign Exchange
You go up to the counter and notice a screen displaying different exchange rates for different currencies.

An exchange rate is the relative price of two currencies from two different countries.

You find “Japanese yen” and think to yourself, “WOW! My one dollar is worth 100 yen?! And I have ten dollars! I’m going to be rich!!!”
When you do this, you’ve essentially participated in the forex market!

You’ve exchanged one currency for another.

Or in forex trading terms, assuming you’re an American visiting Japan, you’ve sold dollars and bought yen.

Currency Exchange

Before you fly back home, you stop by the currency exchange booth to exchange the yen that you miraculously have left over (Tokyo is expensive!) and notice the exchange rates have changed.

It’s these changes in the exchange rates that allow you to make money in the foreign exchange market.

Salepage : Why Are There So Many Banking Crises by Jean Charles Rochet