Deciphering the Liquidity and Credit Crunch 2007-08

Markus Brunnermeier

No 14612, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper summarizes and explains the main events of the liquidity and credit crunch in 2007-08. Starting with the trends leading up to the crisis, I explain how these events unfolded and how four different amplification mechanisms magnified losses in the mortgage market into large dislocations and turmoil in financial markets.

JEL-codes: E4 E5 G2 (search for similar items in EconPapers)
Date: 2008-12
New Economics Papers: this item is included in nep-mac and nep-ure
Note: AP CF EFG IFM ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (141)

Published as Markus K. Brunnermeier, 2009. "Deciphering the Liquidity and Credit Crunch 2007-2008," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 77-100, Winter.

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