Modelli Formali della Crisi (Formal Models of the Crisis)
Accademia dei Lincei; CESifo (Center for Economic Studies and Ifo Institute)
April 13, 2011
Moneta e Credito, Vol. 63, No. 249, pp. 67-79, 2010
In this paper a distinction is made between the immediate technical-financial causes that unleashed the crisis in the United States, and its macroeconomic causes, which also explain its international transmission. Two formal paradigmatic models are considered. The first is Li’s formula on default correlation (“The Formula that Killed Wall Street”), whose misuse gave rise to the crisis. The second is the international financial multiplier set forth by Paul Krugman. After examining these two models, the paper concludes that, contrary to widespread opinion, the crisis was indeed foreseen by some economists, who, coming from the non-mainstream side of the profession, were largely ignored.
Note: Downloadable document is in Italian.
Number of Pages in PDF File: 13
Keywords: Cultura economica, Crisi finanziaria, Regole
JEL Classification: G01, F3, E44
Date posted: April 19, 2011 ; Last revised: April 20, 2011
© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.312 seconds