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17 Pages Posted: 25 Aug 2009 Last revised: 27 Mar 2022
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Date Written: August 2009
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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Yale University - Yale Program on Financial Stability
165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States
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
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