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A Simple Model of The Financial Crisis of 2007-9 PDF

24 Pages·2013·English
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by ['Kofi Appiah-Danquah']| 2013| 24 pages| English

About A Simple Model of The Financial Crisis of 2007-9

The financial crisis of 2007-09 began as a local problem in the mortgage finance market in the United States and Europe but, within months, escalated into a general global financial crisis, resulting in collapsing investment not just in developed nations but also in Shanghai, Rio and Mumbai, and has led to a general recession worldwide. The paper builds a rational-expectations, microeconomic model of why the local crisis escalated into a general freeze in credit flows. It then isolates two very different kinds of interventions needed to restore the economy back to health, arguing that government stimulus policy has not had enough impact because a failure to understand the need for the dual intervention.

Detailed Information

Author:['Kofi Appiah-Danquah']
Publication Year:2013
Pages:24
Language:English
Format:PDF
Price:FREE
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