A Crash Course on the Euro Crisis

Markus Brunnermeier
Authors registered in the RePEc Author Service: Ricardo Reis

No 14016, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The financial crises of the last twenty years brought new economic concepts into classroom discussions. This article introduces undergraduate students and teachers to seven of these models: (i) misallocation of capital inflows, (ii) modern and shadow banks, (iii) strategic complementarities and amplification, (iv) debt contracts and the distinction between solvency and liquidity, (v) the diabolic loop, (vi) regional flights to safety, and (vii) unconventional monetary policy. We apply each of them to provide a full account of the euro crisis of 2010-12.

Keywords: Teaching; Financial crisis; Shadow banking; Safe asset; Pecuniary externalities; Amplification; Systemic risk; Euro crisis (search for similar items in EconPapers)
JEL-codes: E44 F32 G01 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://cepr.org/publications/DP14016 (application/pdf)

Related works:
Working Paper: A Crash Course on the Euro Crisis (2019)
Working Paper: A Crash Course on the Euro Crisis (2019)
Working Paper: Crash Course on the Euro Crisis (2019)
Working Paper: A Crash Course on the Euro Crisis (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:14016

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP14016

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().