Where has all the Money Gone?
Version of Record online: 16 DEC 2009
© 2009 The Economic Society of Australia
Economic Papers: A journal of applied economics and policy
Volume 28, Issue 3, pages 217–225, September 2009
How to Cite
Davis, K. (2009), Where has all the Money Gone?. Economic Papers: A journal of applied economics and policy, 28: 217–225. doi: 10.1111/j.1759-3441.2009.00028.x
- Issue online: 16 DEC 2009
- Version of Record online: 16 DEC 2009
- financial crisis;
- liquidity creation;
- non-bank financial sector
This paper explains how modern developments in lending and liquidity management using short-term secured lending contributed to the process of financial sector expansion prior to the financial crisis and its subsequent unwinding. It focuses upon the role of the non-regulated financial sector, and aims to assist readers to understand the answer to the commonly asked question: where has all the money gone? It draws some lessons and policy implications and identifies a number of regulatory issues emerging as the subject for debate.