A Crash Course on the Euro Crisis

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

No 14016, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 (17)

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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)
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