A Crash Course on the Euro Crisis

Markus Brunnermeier and Ricardo Reis

Working Papers from Princeton University. Economics Department.

Abstract: The financial crises of the last twenty years brought new economic concepts into classrooms 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: Amplification; Euro crisis; financial crisis; Pecuniary externalities; safe asset; shadow banking; systemic risk; teaching (search for similar items in EconPapers)
JEL-codes: E44 F32 G01 (search for similar items in EconPapers)
Date: 2019-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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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: A Crash Course on the Euro Crisis (2019)
Working Paper: Crash Course on the Euro Crisis (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:econom:2019-14

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