CFDP 1715R
The Leverage Cycle
Author(s):Publication Date: July 2009
Revision Date: January 2010
Pages: 57
Abstract:
Equilibrium determines leverage, not just interest rates. Variations in leverage cause fluctuations in asset prices. This leverage cycle can be damaging to the economy, and should be regulated.
Keywords:
Leverage, Collateral, Cycle, Crisis, Regulation
JEL Classification Codes: E3, E32, G01, G12
See CFP: 1304