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The Baseline Scenario

The Baseline Scenario
By Simon Johnson No doubt there is still a lot of shouting to come, but this week a team at the International Monetary Fund completely nailed the issue of whether large global banks receive an implicit subsidy courtesy of the American government. Is there a subsidy, is it large, and how much damage could it end up causing to the broader economy? The answers, in order, are: yes, there is an implicit subsidy that lowers the funding costs for very large banks; the subsidy is big, with costs of borrowing for these banks lowered by as much as 100 basis points, i.e., 1 percentage point; and yet this large scale of implicit support is small relative to the macroeconomic damage that is likely to be caused by the high leverage and incautious risk-taking that the subsidy encourages. If anything the IMF’s work provides a conservative (i.e., low) set of estimates.

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Historical Collection Publications The Historical Review Program, part of the CIA Information Management Services, identifies, collects and produces historically relevant collections of declassified documents. These collections, centered on a theme or event and with supporting analysis, essays, video, audio, and photographs, are showcased in a booklet and DVD that are available to the academic realm and the public. Intelligence Community History International Relations Cold War Topics Hardcopy publications are available to the public through the Government Printing Office [external link disclaimer]. SASI PhD Research degrees The Institute also supports students undertaking PhD study, with supervision being available in a wide range of aspects of sustainability. Some students currently undertaking SD related research are listed below. Applications for PhD study, and any funding opportunities, are handled by the individual Schools and Departments, but please contact us for advice on finding the most appropriate supervisor for your research proposal. Please also see the current list of PhD Studentships (PDF, 140 KB) in the School of Geography & Geosciences. Future Connections 2012 and Scottish SD PhD network

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