The Crisis: Basic Mechanisms, and Appropriate Policies

34 Pages Posted: 10 Jan 2009 Last revised: 15 Jan 2009

Olivier J. Blanchard

National Bureau of Economic Research (NBER); Peter G. Peterson Institute for International Economics

Multiple version iconThere are 2 versions of this paper

Date Written: December 29, 2008

Abstract

The purpose of this lecture is to look beyond the complex events that characterize the global financial and economic crisis, identify the basic mechanisms, and infer the policies needed to resolve the current crisis, as well as the policies needed to reduce the probability of similar events in the future.

Keywords: financial crisis, credit, liquidity, spreads, leverage

JEL Classification: E32, E44

Suggested Citation

Blanchard, Olivier J., The Crisis: Basic Mechanisms, and Appropriate Policies (December 29, 2008). MIT Department of Economics Working Paper No. 09-01. Available at SSRN: https://ssrn.com/abstract=1324280 or http://dx.doi.org/10.2139/ssrn.1324280

Olivier J. Blanchard (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

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