The World Credit Crisis: Understanding It, and What To Do

Warner Corden

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This paper expounds a story in four stages to explain the world credit crisis, namely: (1) too much credit - an international perspective, (2) too much risk - reaction to low real interest rate, (3) the fatal flaw - the new complex financial instruments, and (4) the panic- bank lending dries up. The paper also discusses the relationship of this crisis to the often-expected crisis of the global imbalances, and it outlines various policy implications.

Pages: 23 pages
Date: 2008-12
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Citations: View citations in EconPapers (4)

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http://melbourneinstitute.unimelb.edu.au/downloads ... series/wp2008n25.pdf (application/pdf)

Related works:
Journal Article: The World Credit Crisis: Understanding It, and What to Do (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2008n25

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