Crash Course on the Euro Crisis

Markus Brunnermeier and Ricardo Reis

Working Papers from Princeton University, Department of Economics, Center for Economic Policy Studies.

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: Europe (search for similar items in EconPapers)
JEL-codes: A22 E44 E50 F30 G01 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (17)

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https://gceps.princeton.edu/wp-content/uploads/2019/09/258_Brunnermeier-Reis.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: A Crash Course on the Euro Crisis (2019)
Working Paper: A Crash Course on the Euro Crisis (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:cepsud:258

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