Sudden Financial Arrest

Ricardo Caballero ()

IMF Economic Review, 2010, vol. 58, issue 1, 6-36

Abstract: There are striking and terrifying similarities between the sudden failure of a heart and that of a financial system. In the medical literature, the former is referred to as sudden cardiac arrest. By analogy, I refer to its financial counterpart as a sudden financial arrest. In this article I describe the latter and its treatment guided by its medical counterpart.

Date: 2010
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