The Crisis: Basic Mechanisms and Appropriate Policies
24 Pages Posted: 28 Apr 2009
Date Written: April 2009
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, Fiscal policy, Monetary policy, Housing prices, Securities markets, Financial instruments, Globalization, Financial institutions, Emerging markets, Debt, Credit risk
JEL Classification: E32, E44
Suggested Citation: Suggested Citation