Bank Runs, Deposit Insurance, and Liquidity Diamond and Dybvig(1983

Diaz-Alejandro Lecture University of São Paulo, November 20-22, 2014 Outline of talk A Diaz-Alejandro bibliography Brief biographical note The anatomy and sequence of a financial crisis according to Diaz-Alejandro Where does that leave Latin America now? Lessons from the 1980s and 1990s for the 2010s Please note that throughout the italics are Diaz-Alejandro’s own words Reinhart 2 Essent. [...] (eds.) Financial Policies and the World Capital Market: The Problem of Latin American Countries, Chicago: The University of Chicago Press for the NBER, 1983 Reinhart 3 Other Selected Bibliography Edmar Lisboa Bacha and Carlos F. [...] However, as Carlos explains, the pity of the boom is that “little effort was spent on investigating the credentials of new entrants to the ever-growing pool of lenders and borrowers…practically no inspection or supervision of bank portfolios existed…One may conjecture, however, that most depositors felt fully insured and foreign lenders felt that their loans to the private sector were guaranteed b. [...] Reinhart 35 The aftermath of crises “Hangover, Penance, and Purges” Reinhart 36 The legacy of the severe financial crises Carlos F. [...] Such episodes included the Mexican peso crisis of 1995, the Asian crises of 1997-1998, the Russian and Argentine defaults of 1998 and 2001, respectively.