One of the solutions to the adverse selection problem associated with asymmetric information is the pledging of

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One of the solutions to the adverse selection problem associated with asymmetric information is the pledging of collateral. Why did this solution not work adequately to mitigate the mortgage securitization problems associated with the fi nancial crisis of 2007–2009?

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Money Banking And Financial Markets

ISBN: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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