Modelli Formali della Crisi (Formal Models of the Crisis)
Moneta e Credito, Vol. 63, No. 249, pp. 67-79, 2010
13 Pages Posted: 19 Apr 2011 Last revised: 20 Apr 2011
Date Written: April 13, 2011
In this paper a distinction is made between the immediate technical-financial causes that unleashed the crisis in the United States, and its macroeconomic causes, which also explain its international transmission. Two formal paradigmatic models are considered. The first is Li’s formula on default correlation (“The Formula that Killed Wall Street”), whose misuse gave rise to the crisis. The second is the international financial multiplier set forth by Paul Krugman. After examining these two models, the paper concludes that, contrary to widespread opinion, the crisis was indeed foreseen by some economists, who, coming from the non-mainstream side of the profession, were largely ignored.
Notes: Downloadable document is in Italian.
Keywords: Cultura economica, Crisi finanziaria, Regole
JEL Classification: G01, F3, E44
Suggested Citation: Suggested Citation