Understanding the Flow of Funds and the Financial Crisis of 2008

7/23/2019 Understanding the Flow of Funds and the Financial Crisis of 2008

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_n`orstin`knj tbo mcdw dm Mun`s Uystoh

in` tbo Mkninekic Erksks dm


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Pilco 9. I Munetkdnknj Mcdw dm Mun`s Uystoh wktb Pwd Oedndhke _nkts

Bdusobdc` I Bdusobdc` L

$9666 Knedho ([) $9666266 Ednsuhptkdn (E) 9


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Pilco


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Pilco 5. Bdusobdc` I \oùeos Vrdùetkdn td Zdra Dmm Oxeoss Knvontdry

Pbo mcdw dm mun`s systoh pciys in khpdrtint rdco kn tbo jrdwtb dm in oedndhylut kt ks ndt tbo sdureo dm oedndhke jrdwtb. Oedndhke jrdwtb roqukros kneroisos knrosdureos, cildr, in` toebndcdjy. Bdwovor, dneo tbks jrdwtb bis deeurro`, mkninekichiraots in` tbo mcdw dm mun`s systoh prdvkò tbo hoins td hikntikn tbo kneroiso`covocs dm prdùetkdn.

@kseusskdn Vdknt Edhpiro tdìys ohdjripbkes td tbo 9;=6s in` 9;:6s wbontbo lily lddhors woro ontorknj tbokr prkho ednsuhptkdn ijo mdr ohdjripbkeommoets dn tbo mcdw dm mun`s systoh.

PBO E\KPKEIC \DCO DM MKNINEKIC KNUPKP_PKDNU IN@ HI\AOPUKN PBO MCDZ DM M_N@U

Hitebknj Ldrrdwor in` Conòr

Zbon wo bivo dncy twd oedndhke unkts, kt ks qukto oisy td put Iin` Ltdjotbormdr tbo $


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Mkjuro 9. Pbo Nitkdnic Mcdw dm Mun`s Uystoh

oedndhkos dm seico knecuò tbo pddcknj dm knmdrhitkdn edsts, trinsietkdn edsts, in`

inicysks edsts ierdss cirjo knvosthonts. Mun`s mcdw kntd mkninekic knstktutkdns knshicc òndhknitkdns in` mcdw dut kn cirjo òndhknitkdns. Mun`s icsd mcdw kntdmkninekic knstktutkdns kn sbdrt-td-kntorho`kito torho` hiturktkos in` mcdw dut kn cdnjhiturktkos. Mkniccy, loeiuso mun`s iro edntknuiccy mcdwknj kn in` dut dm mkninekicknstktutkdns, wo bivo ckquk`kty kntorho`kitkdn is wocc. Pbrdujb `kvorskmko`knvosthont pddcs, knstktutkdns ein prdvkò spoekickzo` mkninekic knstruhonts tdsurpcus unkts hdro ommkekontcy it i cdwor edst in` cdwor rksa tbin surpcus unkts einiebkovo ly tbohsocvos.

Mkninekic Knstktutkdns

Is sbdwn kn Mkjuro 9, tboro iro tbroo typos dm mkninekic knstktutkdns mkninekic

hiraots, hdnotiry knstktutkdns in` ndnhdnotiry knstktutkdns pirtkekpitknj kn tbo mcdwdm mun`s systoh. Mkninekic hiraots hiteb surpcus in` omkekt unkts mdr con`knj in`ldrrdwknj. Hdnotiry knstktutkdns con` td omkekt unkts in` ldrrdw mrdh surpcus unktsly kssuknj hdnoy td tbo surpcus unkts. Pbks prdeoss ks andwn is hdnotkzknj òlt,wboroly tbo olt dm òmkekt unkts ks ednvorto` td hdnoy tbit ks tbon uso` wktbkn tbo

< 9< 9?


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oedndhy. Hdnotiry knstktutkdns suppcy hdnoy kn tbo mdrh dm pipor lkccs, edkns, inèboeailco opdskts. I ndnhdnotiry knstktutkdn icsd ldrrdws mrdh surpcus unkts in`

con`s td òmkekt unkts. Bdwovor, tbo soeurktkos prdvkò` ly tbo ndnhdnotiryknstktutkdn td tbo surpcus unkts d ndt iet is hdnoy lut ritbor iro kn`kroet soeurktkoskssuo` is i ckilkckty dm tbo mkninekic knstktutkdn. Pboso soeurktkos hoot spoekickzo`noo`s dm tbo surpcus unkts ly prdvk`knj knsurineo, ponskdns, hutuic mun`s, trustieedunts, ote. Pboso kn`kroet soeurktkos icsd bocp prdvkò i rkeb in` `kvorso sot dmknvosthonts td tbo surpcus unkts td onedurijo tboh td pirtkekpito kn tbo mcdw dm mun`sly con`knj td òmkekt unkts. Pbo mcdw dm mun`s bis td ittriet icc dm tbo sivors in`

`kssivors td pirtkekpito kn dròr td hikntikn tbo eurront covoc dm prdùetkdn. _sknjero`kt hdnoy prdvkòs sivors wktb i `kvorso honu dm soeurktkos rinjknj mrdh nd-roturn, cdw-rksa, bkjb-ckquk`kty (hdnoy) td bkjb-roturn, bkjb-rksa, cdw-ckquk`kty(oqukty). Kt ks eruekic tbit tbo mcdw dm mun s systoh hikntikns tbo ednmkòneo dm iccdm tbo oedndhke unkts wktbkn in oedndhy. Km ednmkòneo ordòs, podpco wkcc coivo

tbo systoh in` rdps kn tbo prdùetkdn dm jdd`s in` sorvkeos wkcc onsuo (roeosskdnin` oprosskdn).Kn Mkjuro 9, surpcus unkts trinsmor tbokr ecikhs td jdd`s in` sorvkeos td tbo

òmkekt unkts in` kn roturn, tboy roeokvo olt in` oqukty knstruhonts mrdh tbo omkektunkts. Pboso knstruhonts ein lo iequkro` tbrdujb tbo mkninekic hiraots dr tboy hiylo trinsmdrho` kntd hdnoy tbrdujb hdnotiry knstktutkdns in` kn`kroet soeurktkostbrdujb tbo ndnhdnotiry knstktutkdns.

Kn Pilco 0, wo soo in dvorvkow dm tbo mkninekic knstktutkdn systoh wktb isuhhiry dm tbokr licineo sboots tbit rosuct mrdh con`knj td òmkekt unkts wbkcoldrrdwknj mrdh surpcus unkts. Pbo knstktutkdns iro kvkò` kntd hdnotiry knstktutkdns,lrdaor/òicors, in` ndnhdnotiry knstktutkdns in` tbo virkdus knstruhonts loknjdmmoro` td surpcus unkts hiy lo soon.

=

@kseusskdn Vdknt @kseuss bdw ly knvostknj kntd i rotkrohont ieedunt it iponskdn mun`, in kn`kvkùic ks pirtkekpitknj kn tbo mcdw dm mun`s systoh.

Y_INPKP[ PBOD\[ DM HDNO[7 H]8DV

Zo noo` indtbor pkoeo dm knmdrhitkdn kn dròr td unòrstin` tbo lusknoss eyecoin` tbo mcdw dm mun`s systoh. Pbo quintkty tbodry dm hdnoy (H]8DV) wis mknickzo`ly Krvknj Mksbor kn 9;99.

: Hdnoy tkhos tbo ]ocdekty dm hdnoy ks oquic td tbo

Dutput dm jdd`s in` sorvkeos tkhos Vrkeos (knmcitkdn/òmcitkdn). Ossontkiccy tbo mdurmietdrs bivo td rohikn kn licineo dvor tkho. Is wo kneroiso tbo hdnoy suppcy (H),tbo nuhlor dm trinsietkdns kneroisos wktbkn tbo oedndhy wbkeb coi`s td kneroisos

kn tbo dutput (D) dm jdd`s in` sorvkeos. _nmdrtunitocy, wo wkcc ovontuiccy run dutdm tbo rosdureos roqukro` td prdùeo hdro dutput (D) in` km tbo hdnoy suppcy aoopsjrdwknj wbkco tbo dutput (D) stijnitos it tbo hixkhuh covoc dm prdùetkdn, tbonknmcitkdn (kneroisos kn tbo prkeo covoc V) wkcc rosuct. Dno rosuct dm knmcitkdn ks tbit wowkcc oeroiso tbo hdnoy suppcy (H) wbkeb wkcc oeroiso tbo dutput (D) wbkeb wkcc

9= I`vineos kn Mkninekic Oùeitkdn


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Pilco 0. Dporitkdns dm Mkninekic Knstktutkdns kn _U Mcdw dm Mun`s Uystoh

Vinoc I7 Dporitkdns dm Hdnotiry KnstktutkdnsIssots Knstktutkdns Kssuo CkilkcktkosPixknj Vdwor _.U. Proisury Pdaon edkns, _U Ndtos,

Proisury Uoeurktkos

Proisury @olt Moòric \osorvo Moòric \osorvo Ndtos

Ednsuhor Cdins,Edhhorekic Cdins,Hdrtjijos, Eicc Cdins,Ero`kt Eir`s

Edhhorekic LinasUivknjs in` CdinsHutuic Uivknjs LinasEro`kt _nkdns

Eboeailco @opdskts,E@s, Ieeoptineos

Edhhorekic pipor, E@s,P-lkccs, Ieeoptineos,\opds

Hdnoy Hiraot HutuicMun`s

Hutuic Mun` UbirosEboeailco @opdskts

Vinoc L7 Dporitkdns dm Lrdaor/@oicors

Issots Knstktutkdns Kssuo CkilkcktkosUoeurktkos Lrdaor/@oicors Eicc Cdins

Vinoc E7 Dporitkdns dm Ndnhdnotiry Knstktutkdns

Issots KnstktutkdnsKssuo Kn`kroet

UoeurktkosUoeurktkos Hutuic Mun`s Hutuic Mun` Ubiros

\oic Ostito \.O.K.P.s Hutuic Mun` Ubiros

UoeurktkosHdrtjijos

Ckmo Knsurineo Ed. Eisb @opdsktsKnsurineo \osorvosInnuktkos

Uoeurktkos Vrdporty Knsurineo Ed. Knsurineo \osorvos

Uoeurktkos Vonskdn Mun`s Eisb @opdsktsInnuktkos

Uoeurktkos, \oic Issots Prust @opirthonts Prust Ieedunts

Hdrtjijos MNHI MNHI Ldn`s

Uoeurktkos JNHI Knsurineo \osorvo

Hdrtjijos, Kns.\osorvo JNHI Hutuic Mun` Knsuro` JNHI Ldn`s

Uoeurktkos, Cdins,Ero`kt Eir`s, Hdrtjijos

Ndn-Lina Mknineo EHD, ECD, E@D,\HLU, EHLU, E@U

roùeo tbo knmcitkdn. _nmdrtunitocy, wo usuiccy bivo td oxporkoneo i roeosskdn(òeroiso kn dutput) kn dròr td lrknj tbknjs liea kntd licineo.

2

Pboromdro, kn dròr td provont knmcitkdn is wo roieb tbo mucc ohpcdyhont dmrosdureos (hixkhkzknj dutput), wo noo` i eontric hdnotiry iutbdrkty td knmcuoneo

< 9< 9:


8/29

tbo hdnoy suppcy.; Kn tbo _.U., wo `k` ndt bivo i truo eontric hdnotiry iutbdrkty

untkc tbo Moòric \osorvo wis eroito` kn 9;95. Hiny podpco d ndt unòrstin` tbit

tbo vicuo dm ero`kt hdnoy ks dltikno` mrdh tbo prdùetkdn dm jdd`s in` sorvkeos kndur oedndhy. Hdnoy bis vicuo loeiuso kt hiy lo oxebinjo` mdr jdd`s in` sorvkeos.Km wo d ndt prdùeo iny jdd`s in` sorvkeos, tbon tbo hdnoy bis nd vicuo. Hdnoyin` Ero`kt iro jonorito` tbrdujb tbo prdùetkdn dm jdd`s in` sorvkeos in` tbo mcdwdm mun`s mrdh surpcus unkts td òmkekt unkts. Pbo òhin` mdr hdnoy mrdh tbooedndhy ks otorhkno` ly tbo noo` td hiao trinsietkdns in` td hikntikn ckquk`kty.

Mrietkdnic \osorvo Linaknj Uystoh

Pbo mrihowdra tbit onilcos tbo quintkty tbodry dm hdnoy ks tbo mrietkdnic

rosorvo linaknj systoh. Bdusobdc` I opdskts hdnoy it i lina in` dncy i pdrtkdndm tbks ks aopt is rosorvos ly tbo lina. Pbo ihdunt tbit ks ndt hikntikno` mdr

rosorvos ks uso` td hiao cdins td dtbor kn`kvkùics. Pbo cdin mrdh Bdusobdc` Isòpdskt ks uso` ly Bdusobdc` L. Bdusobdc` Lwkcc tbon eroito i now òpdskt,onilcknj now cdins td lo ednstrueto` td sulsoquont kn`kvkùics. Pbus Kn`kvkùic

Is knktkic òpdskt bis sueeooò` kn huctkpcyknjtbo hdnoy suppcy td in ihduntjroitor tbin tbo drkjknic opdskt. Ly ebinjknj tbo roqukro` rosorvo ritkd dn opdskts,tbo Moòric \osorvo knmcuoneos tbo huctkpckeitkdn dm opdskts tbrdujbdut tbo linaknjsystoh. Pbo prdlcoh it tbo hierd covoc ks tbit nd sknjco lina kneroisos tbo hdnoysuppcy. Oieb lina tiaos i opdskt, sots iskò tbo rosorvo roqukrohont in` con`s tborohiknòr. Is tbo huctkpckeitkdn dm òpdskts wdra tbokr wiy tbrdujb tbo linaknjsystoh, wo bivo in oxpinskdn dm tbo hdnoy suppcy. Pbus, tboro bis td lo i eontrichdnotiry iutbdrkty sueb is tbo Moòric \osorvo td provont in dvorsuppcy dm hdnoyin` ero`kt.

Zbkco wo iro ieeustdho` td tbks huctkpckor loknj pdsktkvo, kt ein in` dos turnnojitkvo it tkhos. Ukneo tbo lina `dos ndt aoop icc dm Kn`kvkùic Is òpdskt isrosorvos, km Kn`kvkùic Iòekòs td wktb`riw tbo òpdskt, tbo lina hust ckqukìtowbitovor ietkvkty tboy bivo `dno wktb tbo hdnoy. Km tbo lina bis purebiso`soeurktkos, tboy hust socc tboh. Km tbo lina bis hiò i cdin, tboy hust eicc tboldrrdwor in` bivo tboh ropiy tbit cdin. Pboso ietkdns mdreo skhkcir ietkdns mrdhdtbor pirtkos eroitknj i nojitkvo huctkpckor. Pbo nojitkvo eisei`knj ovont oeroisostbo ihdunt dm hdnoy in` ero`kt, rosuctknj kn omcitkdn. Km tboso ietkdns eiuso hiny

kn`kvkùics td wktb`riw tbokr opdskts mrdh tbo lina, i lina runhiy onsuo wborohdro òpdskts iro wktb`riwn tbin tbo lina ein ckquomy issots ly eiccknj kn cdins.

PBO MO@O\IC \OUO\]O (PBO MO@)

Pbo Moòric \osorvo wis ndt eroito` td knmcuoneo tbo hdnoy suppcy, lut ritborwo `ksedvoro`, tbo noo` mdr i conòr dm tbo cist rosdrt. Kn tbo 9266s, tbo _.U.oedndhy wis oxeoptkdniccy vdcitkco. Linas wduc` oxpin` cdins td knecuò hirjkniccdins td ldrrdwors (sulprkho con`knj ks tbo hdòrn torh) tbus kneroisknj tbo hdnoy

92 I`vineos kn Mkninekic Oùeitkdn


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suppcy. Zbon tbo oedndhy sticco`, linas wduc` edntknuo td oxpin` cdins tdhirjknic ldrrdwors. Mkniccy, tbo linas oxporkoneo` kneroiso` òmiucts, coi`knj td

tbo pulckes cdss dm ednmkòneo kn tbo simoty dm tbokr hdnoy kn tbo linas. Ilina runwduc` rosuct wboro ovorydno runs td tbo lina td wktb`riw tbokr opdskts. Zbon tbolinas mikco`, tboro wis ndld`y td hiao edhhorekic (wdraknj eipktic) cdins tdedhpinkos in` mietdrkos wduc` stirt td ecdso, proekpktitknj roeosskdn in` bkjbunohpcdyhont. Pboso porkd`s woro dmton ieedhpinko` ly vkdcont wdraor rkdts. Lytbo 92;6s, G.V. Hdrjin `ksedvoro` tbit km ydu educ` stdp tbo lina run it tbo mkrstlina, ydu educ` stdp tbo pinke in` ivdk` tbo edccipso kn lina con`knj in` tborosuctknj roeosskdn. Zo nooò` i conòr dm tbo cist rosdrt wbdso ero`kt ks sdkhpoeeilco tbit kt ks ilco td stdp lina runs. Hdrjins lina wis tbo o mietd eontriclina dm tbo _nkto` Utitos kn tbo 92;6s.

Kn tbo imtorhitb dm tbo Lina Vinke dm 9;6:, Ednjross boc` boirknjs in` coirnoìldut tbo conòr dm tbo cist rosdrt mrdh G.V. Hdrjin in` mrdh i tdur dm Ourdpoin

eontric linas. Is i rosuct, tboy pisso` tbo Moòric \osorvo Iet dm 9;95. PboMoòric \osorvo (i.a.i. Pbo Mo`) wis sot up wktb tbo cojic pdwor td lo tbo conòr dmtbo cist rosdrt wktbkn dur mcdw dm mun`s systoh.

Lijobdt in` tbo Conòr dm tbo Cist \osdrt

Lijobdt (92:5) wrdto tbo mdccdwknj ùrknj tbo 92:6s7 vory cirjo (`dhostke)cdins it vory bkjb ritos iro tbo lost roho`y mdr tbo wdrst hici`y dm tbo hdnoyhiraot wbon i mdrokjn `rikn ks i`ò` td i `dhostke `rikn.

96Zictor Lijobdts

prknekpco ks dvor i eontury dc`. Bo kòntkmkos tbo noo` mdr i eontric lina wktb tbocinjuijo vory cirjo (`dhostke) cdins. Icsd, bo kòntkmkos tbo noo` td hikntikn tbomcdw dm mun`s wktb tbo cinjuijo lost roho`y.

Pbo lost roho`y ks td prdvkò ckquk`kty td tbo mcdw dm mun`s td miekcktito tbordco dm hiraots in` knstktutkdns kn hitebknj ldrrdwor in` conòr. Ednjross roickzo`tbo hijnktuò dm tbks noo`, in` tboy eroito` tbo Moòric \osorvo td khpcohont tbkssdun` prknekpco dm i eontric hdnotiry iutbdrkty tbit ein hiao vory cirjo `dhostkecdins kn dròr td hikntikn ckquk`kty wktbkn tbo linaknj systoh (Conòr dm tbo Cist\osdrt). _nmdrtunitocy, kt ks hdro dm in irt tbin i sekoneo wbon òtorhknknj tbostrueturo dm tbdso vory cirjo cdins in` tbo vory bkjb ritos.

Moòric \osorvo Hinìtos

Pbo Ohpcdyhont Iet dm 9;0= wis in ittohpt ly tbo moòric jdvornhont tdòvocdp hierdoedndhke pdckey. Pbo iet onedurijos tbo moòric jdvornhont td

prdhdto hixkhuh ohpcdyhont, prdùetkdn, in` purebisknj pdwor. PboBuhpbroy-Biwakns Iet dm 9;:: spoekmkeiccy hiò tboso hinìtos tbo jdics dm tboMoòric \osorvo. Pbks ks eurrontcy romcoeto` kn tbo Moòric \osorvos rdco knittohptknj td hikntikn prkeo stilkckty in` hixkhuh ohpcdyhont.

< 9< 9;


10/29

Mkjuro


11/29

Uoetkdn 95(5) dm tbo Moòric \osorvo Iet

5. @ksedunts mdr Kn`kvkùics, Virtnorsbkps, in` Edrpdritkdns

Kn unusuic in` oxkjont ekreuhstineos, tbo Ldir` dm Jdvorndrs dm tboMoòric \osorvo Uystoh, ly tbo immkrhitkvo vdto dm ndt coss tbin mkvohohlors, hiy iutbdrkzo iny Moòric \osorvo lina, urknj sueb porkd`s istbo sik` ldir` hiy òtorhkno, it ritos ostilcksbo` kn ieedrìneo wktb tboprdvkskdns dm soetkdn 90, sul`kvkskdn (`), dm tbks Iet, td `ksedunt mdr inypirtkekpint kn iny prdjrih dr miekckty wktb lrdi`-liso` ockjklkckty, ndtos,`rimts, in` lkccs dm oxebinjo wbon sueb ndtos, rimts, in` lkccs dm oxebinjoiro kn`drso` dr dtborwkso soeuro` td tbo sitksmietkdn dm tbo Moòric \osorvolina7 Vrdvkò`, Pbit lomdro `kseduntknj iny sueb ndto, `rimt, dr lkcc dmoxebinjo, tbo Moòric \osorvo lina sbicc dltikn ovkòneo tbit sueb

pirtkekpint kn iny prdjrih dr miekckty wktb lrdi`-liso` ockjklkckty ks unilcotd soeuro iòquito ero`kt ieedhhdìtkdns mrdh dtbor linaknj knstktutkdns.Icc sueb ksedunts mdr iny pirtkekpint kn iny prdjrih dr miekckty wktb lrdi`-liso` ockjklkckty sbicc lo sulgoet td sueb ckhktitkdns, rostrketkdns, in`rojucitkdns is tbo Ldir` dm Jdvorndrs dm tbo Moòric \osorvo Uystoh hiyproserklo.

Pbks now cinjuijo prdvkòs i ecoir spoekmkeitkdn dm tbo prdeoùros inèdn`ktkdns mdr Moòric \osorvo kntorvontkdn kntd tbo mcdw dm mun`s ly con`knj tdkn`kvkùics, pirtnorsbkps, in` edrpdritkdns.

Pbo Mo` bis uso` kts conòr dm tbo cist rosdrt (CDC\) pdwors nuhordus tkhosùrknj tbo pist =6 yoirs. Kt bis kntorvono` kn tbo Vonn Eontric erksks kn 9;:6

(edhhorekic pipor), Mrinackn Nitkdnic Lina kn 9;:0, tbo Cdhlir` Zicc/@rysìcoerksks kn 9;2


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kn 9;55 wbkeb kntrdùeo` tbo edneopt dm sopiritknj mkninekic knstktutkdns ieedr`knjtd tbokr lusknoss cknos (edhhorekic, ednsuhor, in` knvosthont linaknj). Pbo

@K@HEI rohdvo` rostrketkdns dn wbit issots educ` lo boc` ly i mkninekicknstktutkdn. Pbo khho`kito trkjjor td tbo U&C erksks kn tbo cito 9;26s rosucto` mrdhsivknjs in` cdins loknj iccdwo` td ontor tbo edhhorekic con`knj hiraot. Isnowedhors td tbo hiraot, tboy dncy bi` ieeoss td hirjknic cdins in` wbon tbo roicostito hiraot edntrieto`, tboy woro comt wktb sorkdus cdssos kn edhhorekic in`roskòntkic roic ostito cdins.

95 Icc mkninekic knstktutkdns woro òrojucito` wbon tbo

cist vostkjos dm tbo Jciss-Utoijicc Iet woro ropoico` tbrdujb tbo Jrihh-Coieb-LckcoyIet dm 9;;;. Pbo 9;;; iet iccdwo` ndn-lina mkninekic knstktutkdns ckaolrdaorijo, knsurineo, in` knvosthont linaors td horjo wktb dtbor mkninekic

knstktutkdns. Kn i``ktkdn, tbo Edhhd`kty Muturos Hdòrnkzitkdn Ietdm


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Mkjuro 5. Pbo Utrueturo dm i Edccitorickzo` Cdin Dlckjitkdn (ECD)trueturo` Mkninekic Vrd`uet

Udureo7 Lusknoss Zooa, Detdlor


14/29

Mkjuro 0. Innuic _.U. Hdnoy Uuppcy Jrdwtb

Edurtosy dm Ubi`dwUtits.edh


15/29

td knvostdrs prdvkò` tbo mun`s mdr tbo noxt E@D strueturo sdc` td knvostdrs.92

Zowktnoss tbo ommoet dm tbks oxpcdskvo oxpinskdn dm ero`kt kn tbo H5 hdnoy suppcy pcdt

kn Mkjuro 0. Pbo H9 hdnoy suppcy ednsksts dm hdnoy7 edkns, pipor hdnoy, inèboeailco òpdskts. Pbo H5 hdnoy suppcy ednsksts dm hdnoy in` noir hdnoyknstruhonts tbit iro eroito` tbrdujb trinsietkdns kn tbo mcdw dm mun`s systoh. Pwddm tbo rdcos dm hdnoy iro7 (9) ho`kuh dm oxebinjo td miekcktito trinsietkdns, in` (


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kn i kvorskmko` hinnor miekcktito` tbo ilkckty dm tbo ldrrdwors td dltikn edhhorekiccdins dm viryknj hiturkty ìtos in` kntorost ritos. Pbks wis icc pdssklco tbrdujb

issot soeurktkzitkdn. Pbo jroo` in` proìtdry purvoyineo dm tboso soeurktkzo`prdùets wis onilco` tbrdujb tbo òrojucitkdn wo `kseusso` oirckor (is wocc isritknjs ijonekos mikcuros). _nmdrtunitocy mdr tbo mcdw dm mun`s systoh, tbo mkninekicknstktutkdns knvdcvo` kn issot soeurktkzitkdn hiò i vory sorkdus hkstiao, k.o., tboknstktutkdns issuho` tbit tbo ilkckty td kvorskmy rohikno` stitkdniry dvor tkho. Istbo oedndhy hdvos tbrdujb tbo lusknoss eyeco, tbo ilkckty td kvorskmy ebinjos. Isi rosuct, tbo strueturo` mknineo prdùets (E@D) woro ndt lukct td survkvo i cirjo`dwnwir` ebinjo kn tbo lusknoss eyeco. Pbo lkjjor prdlcoh deeurro` wbon tboE@Ds stirto` tbokr oxpcdskvo jrdwtb kn


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Pilco ?. Mo`oric \osorvo Pilco M.0 mrdhMo`oric \osorvo Mcdw dm Mun`s \opdrt dm ;-


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Pilco =. Mcdw dm Mun`s Uuhhiry in` tbo Oedndhy mrdh


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Mkjuro ?. _n`orstin`knj Pbo _.U. Oedndhy Pbrdujb Ero`kt Mcdws(Innuic tbrdujb


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in` tboro sbduc` lo suktilco punksbhont km ydur linas pdckekos eroito i lina runin` sulsoquont pinke. Mdrhor Mo`oric \osorvo Ebikrhin Zkcckih HeEbosnoy

Hirtkn lost oserklo` tbo Mo`s rdco kn tbo oedndhy. Pbo Mo`s gdl ks td tiao iwiytbo puneb ldwc gust is tbo pirty jots jdknj.Pbo mkninekic mcdw dm mun`s systoh ks dno dm hinakn`s jroitost

ieedhpcksbhonts1


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hikntiknknj sdho ednsuhptkdn. Pbks ks uo td tbo mkxo` knedho tbit tbks pdpucitkdnsojhont wkcc lo ckvknj dn, sueb is Udekic Uoeurkty in` ponskdn piyhonts. Pbo

rotkrknj lily lddhors iro tbo hdst prosekont oxihpco td`iy. Pbks nojitkvo ommoettd tbo mcdw dm mun`s ein dncy lo dmmsot ly kneroiso` prd`uetkdn/ednsuhptkdn mrdhtbo ydunjor jonoritkdns.

?I vory skhkcir ebirt ippoiro` kn Vdciadmm (9;:9) in` @urakn in` Vdciadmm

(9;2


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95Nokc Lusbs Ukcvori`d U&C (9;22) in` Ebircos Aoitknjs Cknedcn Uivknjs

in` Cdin (9;2;) woro twd dm tbo hdro spoetieucir mikcuros ùo td li` edhhorekic

cdins. Aoitknjs mikcuro wis hdro icdnj tbo cknos dm i Vdnzk seboho, i mriuònedurijo` ly tbo òrojucitkdn dm U&Cs.90

Pbo ciea dm rojucitkdn kn tbo Ero`kt @omiuct Uwip (E@U) hiraot eroitoìndtbor hdric bizir`. Pott (


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Vrdtoss, Lon (


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Mkjuro I.9. Pbo Kntornitkdnic Mcdw dm Mun`s mrdh

Uurpcus Eduntrkos td @omkekt Eduntrkos

Pbo ndnhdnotiry knstktutkdns stirt wktb tbo Zdrc` Lina (KL\@) in` hutuic mun`s,knsurineo edhpinkos, ote. tbit dporito kntornitkdniccy. Pbo KHM kssuos i ero`kt

hdnoy andwn is i spoekic riwknj rkjbt (U@\) tbit ks uso` is i rosorvo eurroney lytbo eontric linas.

Pbo nitkdnic mcdw dm mun`s, is sbdwn kn Mkjuro I.9, mdr oieb eduntry roprosontsi surpcus dr omkekt unkt kn tbo kntornitkdnic mcdw dm mun`s. Is sueb, tbo nitkdnic mcdwdm mun`s systohs iro sulsystohs dm tbo kntornitkdnic mcdw dm mun`s systoh.

Pbo eontric linas dm oieb eduntry roprosont tbo hdnotiry iutbdrkty kn tbiteduntry in` bivo tbo rospdnsklkckty dm hikntiknknj tbo ednvortklkckty dm tbo eduntryseurroney. Ednvortklkckty hoins tbit iny lina tbrdujbdut tbo wdrc` wkcc ieeopt ieurroney kn oxebinjo mdr indtbor eduntrys eurroney. Kn Pilco I.9, wo soo tbohigdr kntornitkdnic knstktutkdns.

@kseusskdn Vdknt @kseuss tbo _U òmkekt in` tbo dmmsottknj surpcusos dm dtbor

eduntrkos sueb is Ebkni in` tbo Jucm dkc stitos.

_nkto` Utitos (@dccir) tbit rosuct mrdh tbo ìkcy lusknoss dm oxpdrtknj in`khpdrtknj jdd`s in` sorvkeos. Pbo eontric linas iro tbo Moòric \osorvo mdr tbo _.U.

< 9< 5?


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Pilco I.9. Hdnotiry in` Ndnhdnotiry Knstktutkdns kn tboKntornitkdnic Mcdw dm Mun`s

Issots Hdnotiry Knstktutkdns Kssuo Ckilkcktkos

Ldn`s, Cdins, K nt ornit k dnic Hdnotiry U@\s, Yudt isEur r onek os Mun`

Ldn s, Cdins Edhhor ek ic Linas Eur r oney @ondhk nito`@opdsk t s

Eur r onek os Eont r ic Linas Eur r oneyLdn s, Cdins

Issots Ndn-Hdnotiry Knstktutkdns Kn`kroet Uoeurktkos

Cdins K L\@ Zdr c ` Lina Ldn`s

Uoeur k t k os Hut uic Mun`s Hutuic Mun` Ubir os

Uoeur k t k os K nsurineo Edhpink os K nsurineo \osor vos

Uoeur k t k os Vonsk dn Mun`s Innuk t k os

@dccir in` tbo Ourdpoin Eontric Lina (OEL) mdr tbo Ourd. Utirtknj it tbo tdp, wosoo in Ihorkein edhpiny oxpdrtknj i edhputor td Jorhiny. Pbo lusknoss knJorhiny wrktos i eboea kn Ourds td piy mdr tbo edhputor. Pbo Ihorkein edhpiny

òpdskts tbo eboea kn kts lina wbkeb ero`kts tbo Ihorkein edhpinys ieedunt kn _U`dccirs. Pbo Ourds rohikn wktbkn tbo Ihorkein linaknj systoh mdr tbo tkho loknj.Noxt, i Jorhin edhpiny oxpdrts i eir td tbo _nkto` Utitos. Pbo eustdhor kn tbo_.U. piys tbo Jorhin edhpiny wktb i eboea òndhknito` kn _U `dccirs. PboJorhin edhpiny òpdskts tbo eboea kn tbokr lina wbkeb ero`kts tbokr ieedunt knOurds.

Is tbo linas ieeuhucito mdrokjn eurronekos, tboy dncy noo` sd hueb mdrokjneurroney mdr iy-td-ìy lusknoss in` wkcc triò tbo oxeoss td tbokr eontric lina mdr`dhostke eurroney. Pboromdro, _U `dccirs wkcc ieeuhucito kn tbo OEL in` Ourdswkcc ieeuhucito kn tbo Moòric \osorvo. It sdho pdknt, tbo OEL in` tbo Mo` wkccswip eurronekos son`knj tbo dccirs liea td tbo _.U. in` Ourds liea td Ourdpo. Iscdnj is oxpdrts in` khpdrts licineo dut lotwoon tbo twd eduntrkos, tbon tbo eontric

linas noo` td dncy swip eurronekos coss mroquontcy. Cots oxihkno tbo rihkmkeitkdnskm tbo _nkto` Utitos runs i triò òmkekt wktb Jorhiny, k.o. khpdrts hdro mrdhJorhiny tbin kt oxpdrts td Jorhiny4

Pbo rosuct ks tbit tbo suppcy dm _U dccirs kn Jorhiny wkcc stirt td kneroiso. PboOEL ks ndt roeokvknj ondujb Ourds mrdh tbo Moòric \osorvo td tiao tboso oxeoss

5= I`vineos kn Mkninekic Oùeitkdn


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Mkjuro I.


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0. Uuppross tbo @omkekt Pbo _.U. jdvornhont ein hiao Jorhin khpdrtshdro oxponskvo ly kneroisknj tirkmms (khpdrt tixos) dn Jorhin jdd`s in`

sorvkeos. Ly hiaknj Jorhin khpdrts hdro oxponskvo, wo sbduc` khpdrtcoss mrdh Jorhiny. Indtbor stritojy ks td eroito qudtis tbit iccdw dncy sdhiny Jorhin jdd s in` sorvkeos kntd tbo _.U. In oxihpco wduc` lo iqudti tbit iccdws i mkxo` nuhlor dm eirs td lo khpdrto`.

Pbo prdlcoh wktb tbo cist ictornitkvo ks tbit Jorhiny hiy rotickito wktb bkjbortirkmms in` qudtis dn tbo _.U. jdd`s in` sorvkeos. Vrdtoetkdnkst tirkmm wirs iroòstruetkvo td wdrc` triò kn tbit tboy roùeo tbo ihdunt dm wdrc` triò dr wdrc`J@V. Dno dm tbo cossdns dm tbo Jroit @oprosskdn ks tbit kneroisknj tirkmms wkcc eiusodtbor eduntrkos td rotickito tbus `ristkeiccy roùeknj tbo ihdunt dm triò lotwooneduntrkos. Kn 9;56, tbo _nkto` Utitos pisso` tbo Uhddt-Biwcoy Pirkmm Iet wbkebrikso` tirkmms dn


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Ippon`kx L7 Pbo \oic Pdd Lkj td Mikc dr tbo Mcdw dm Mun`s is i Vulcke Jdd`

Pbo dno torh tbit wo boir` `urknj tbo

Understanding the Flow of Funds and the Financial Crisis of 2008

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