DocumentCode
2077409
Title
Notice of Retraction
Liquidity and Financial Crises
Author
Chen Xiaoyan ; Wei Yi ; Xu Qin
Author_Institution
Sch. of Econ. & Manage., Tongji Univ., Shanghai, China
fYear
2009
fDate
20-22 Sept. 2009
Firstpage
1
Lastpage
5
Abstract
Notice of Retraction
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
With money liquidity, transaction liquidity, funding liquidity and their interactions, this article analyzes the innovation of the subprime mortgage crisis and its transformation into the financial crisis. The findings show that as in other historical financial crises the overall liquidity meltdown is the direct cause. The default in subprime mortgage is just the fuse. Typically, as the money policy is getting tightened, money liquidity deteriorates, which will have great impact on transactions liquidity and then on funding liquidity. And the exacerbation of funding liquidity will lead transactions liquidity (and then money liquidity) to decline even further. Then the financial market appears less money liquidity, which again feeds back on transaction liquidity and funding liquidity. Such two positive feedback loops will eventually result in an overall liquidity meltdown.
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
With money liquidity, transaction liquidity, funding liquidity and their interactions, this article analyzes the innovation of the subprime mortgage crisis and its transformation into the financial crisis. The findings show that as in other historical financial crises the overall liquidity meltdown is the direct cause. The default in subprime mortgage is just the fuse. Typically, as the money policy is getting tightened, money liquidity deteriorates, which will have great impact on transactions liquidity and then on funding liquidity. And the exacerbation of funding liquidity will lead transactions liquidity (and then money liquidity) to decline even further. Then the financial market appears less money liquidity, which again feeds back on transaction liquidity and funding liquidity. Such two positive feedback loops will eventually result in an overall liquidity meltdown.
Keywords
financial management; state feedback; financial crises; financial market; funding liquidity; liquidity meltdown; money liquidity; money policy; positive feedback; subprime mortgage crisis; transaction liquidity; Computer crashes; Crisis management; Feeds; Financial management; Fuses; Innovation management; Loans and mortgages; Macroeconomics; Stock markets; Technological innovation;
fLanguage
English
Publisher
ieee
Conference_Titel
Management and Service Science, 2009. MASS '09. International Conference on
Conference_Location
Wuhan
Print_ISBN
978-1-4244-4638-4
Type
conf
DOI
10.1109/ICMSS.2009.5301197
Filename
5301197
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