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18 Pages Posted: 11 Aug 2009 Last revised: 17 May 2010
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Date Written: May 12, 2010
Abstract
When 'confidence' is lost, 'liquidity dries up.' We investigate the meaning of 'confidence' and 'liquidity' in the context of the current financial crisis. The financial crisis is a manifestation of an age-old problem with private money creation, banking panics. We explain this and provide some evidence with respect to the current crisis.
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Andrew Metrick
Yale School of Management ( email )
165 Whitney Avenue
New Haven, CT 06511
United States
(203)-432-3069 (Phone)
HOME PAGE: http://faculty.som.yale.edu/andrewmetrick/
Yale University - Yale Program on Financial Stability
165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States
Yale University - Yale Program on Financial Stability
165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States
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