Redistribution through the Geithner Plan

Buchbeitrag

Appropriate policies to address the problem of toxic assets should act as automatic stabilizers, so that institutions who toxic assets turn out to be worthless receive more public support than institutions whose toxic assets have value. Furthermore, such policies should be frugal in their demands on the taxpayer. In the context of a simple illustrative toxic asset, the paper shows that the Geithner Plan fulfills neither of these desiderata. The plan is extremely wasteful when banks need only modest bailouts; when they need large bailouts, the plan is ineffective.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: In: The crisis and beyond ; Year: 2009 ; Pages: 19-23 ; Ed(s).: Klodt, Henning ; Lehment, Harmen ; Kiel: Kiel Institute for the World Economy

Classification and Topics

• Classification: Wirtschaft
• Subject: Bankenkrise ; Staatliche Einflussnahme ; Notleidende Kredite ; Bad Bank ; Kritik ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Snower, Dennis J.
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/32968
• Last update: 10.03.2025, 11:44 AM CET