Federal Reserve Chairman Ben Bernanke has a recommended reading list for the financial crisis of 2007-2008, and a paper by Yale University professor Gary Gorton on securitization and the run on the repurchase market tops the list.
Bernanke told the list to the Financial Crisis Inquiry Commission when they asked him what books or academic papers people should read to understand the crisis.
The list comes to RepoWatch readers from the Wall Street Journal’s Deal Journal, which published it September 2. For more details, see the Deal Journal.
1. “The Panic of 2007,” by Yale economist Gary Gorton. This paper was delivered at the August 2008 Jackson Hole Economic Summit.
2. “Deciphering the Liquidity and Credit Crunch 2007-08” by Princeton economist Markus Brunnermeier, published in the Journal of Economic Perspectives in 2009. Bernanke singled out the paper’s focus on the problems in the repo market, according to the Deal Journal.
3. “CoVaR,” by Brunnermeier and New York Fed vice president Tobias Adrian. This paper offers a way to measure a firm’s systemic risks.
4. “Lords of Finance,” a 2009 non-fiction book by Liaquat Ahamed that tells the story of the world’s leading central bankers in the period leading up to the Great Depression.