11,435 research outputs found
Asset Bubbles and Their Consequences
In the past, the federal government has introduced moral hazard in the banking system through deposit insurance. Banks underpriced risk because of the federal guarantee that backed deposits. After banking crises in the 1980s and 1990s, deposit insurance was put on a sound basis and that source of moral hazard was mitigated. In its place, monetary policy has become a source of moral hazard. In acting to counter the economic effects of declining asset prices, the Federal Reserve has come to be viewed as underwriting risky investments. Policy pronouncements by senior Fed officials have reinforced that perception. These actions and pronouncements are mutually reinforcing and destructive to the operation of financial markets. The current financial crisis began in the subprime housing market and then spread throughout credit markets. The new Fed policy fueled the housing boom. Refusing to accept responsibility for the housing bubble, the Fed's recent actions will likely fuel a new asset bubble. The cumulative effects of recent monetary policy undermine the case for free markets
Anxiety reduction via brief intervention in dentally anxious patients : a randomized controlled trial
Aim: To compare the degree of anxiety reduction in dentally anxious patients attending a Dental Access Centre where the dentist did or did not receive the patients’ assessment of dental anxiety. Methods: Patients attending two Dental Access Centres in England, completed the Modified Dental Anxiety Scale (MDAS). Those that scored high completed a state anxiety questionnaire (STAI-S) and were randomized into three groups (n=182) to test the hypothesis that patients sharing assessment information about their dental anxiety to members of the dental team has beneficial effects on their state anxiety. Group 1 were controls (n=60), Group 2 gave their MDAS to the receptionist who passed it onto the dentist unknown to the patient (n=62) and Group 3 handed their MDAS to the dentist (n=60). After their appointment they repeated the STAI-S. Results and conclusion: Patients in Group 3 were less anxious (by more than STAI-S 3 scale units) on leaving the surgery than those from the other groups especially if they entered into a discussion with the dentist about their concerns (by more than 5 scale units). Brief assessment of dental anxiety shared by the patient with the dentist collaboratively has the potential to reduce anxiety on completion of the appointment. Dental anxiety is common, has a multifactorial aetiology, and is far from being homogenous, as individuals seem to differ in the origins, age of onset and manifestations of their dental fears (Locker et al., 2001b); (Milgrom et al., 1988). Previous negative experiences are a major factor in the development of dental anxiety (Kleinknect et al., 1973); (Bernstein et al., 1979); (de Jongh et al., 1995); (Locker et al., 1999); (Ost and Hugdahl, 1985). For some individuals, their fear of dentistry may be associated with concurrent anxiety disorders, or more general psychopathology (Locker, 2003); (Locker et al., 2001a).PreprintPeer reviewe
Banking reform
Bank failures ; Savings and loan associations ; Bank supervision ; Deposit insurance
Economic slowdown: demand or supply induced?
Economic indicators ; Business cycles
Social Security private accounts: a risky proposition?
In the ongoing debate over Social Security, private accounts have been recommended as one part of the resolution of the funding difficulties the system faces in coming years. This article discusses what private accounts can and cannot do for individuals who choose to use them and for future Social Security deficits. ; Under current proposals, private accounts would give account holders personal ownership rights and could be willed to heirs at death. Most proposals would limit the range of assets that can be held but would permit account owners to determine their investments based on personal risk preferences. To the extent that financial asset returns can be higher than returns on Social Security, private accounts can be more worthwhile for those with a longer time until retirement because any difference in returns can compound over a longer period. ; Private accounts carry the risks inherent in holding financial assets, but Social Security carries a real risk of lower benefits in the future. Holders of private accounts would be trading one type of risk for another. ; The creation of private accounts can reduce Social Security’s future problems if the reductions in benefits in exchange for deposits in private accounts reflect the initial deposit plus interest earned.>Social security
Money, deregulation and the business cycle
Money ; Business cycles ; Monetary theory
Rules and discretion in monetary policy
Monetary policy ; Velocity of money
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