Understanding the Flow of Funds System and the Financial Crisis of 2008
Advances in Financial Education, Forthcoming
Posted: 27 Aug 2011 Last revised: 10 Dec 2012
Date Written: May 7, 2011
Abstract
The purpose of this paper is to lay out a logical approach for understanding the flow of funds system and its role in the financial crisis of 2008. It presents the flow of funds system without bogging down into the Fed's flow of funds accounting reports. Once the flow of funds is understood, we can look to where the process broke down causing the financial crisis of 2008 and the current "Great Recession".
Keywords: Federal Reserve, Flow of Funds, Deregulation, Lender of Last Resort
JEL Classification: E5, E58
Suggested Citation: Suggested Citation
Nawrocki, David N. and Viole, Fred, Understanding the Flow of Funds System and the Financial Crisis of 2008 (May 7, 2011). Advances in Financial Education, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1917099
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