34 Pages Posted: 10 Jan 2009 Last revised: 15 Jan 2009
Date Written: December 29, 2008
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: 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