Publication

This paper discusses the turmoil in international financial markets that has often been named after the US subprime sector in which it originated. The author suggests that an alternative description could be the TLA crisis, given the profusion of Three Letter Acronyms (TLAs) – MBSs, ABSs, CDOs, SPVs – used in many analyses of developments. The paper argues that recent crises tells us a lot about the financial system and its vulnerability to crisis and provide some significant lessons for regulators and central banks.