Economics, Econometrics and Finance
8 years ago

Financial Crisis Study Reveals How Markets Can Drive Economy Down

SSRN Electronic Journal
Anatomy of a Financial Crisis
Frederic S. Mishkin

Paper Summary

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Financial crises happen when problems like unfair information and risky behavior make it hard for money to go to the best investments. This can make the economy go down fast. The way information is shared can help us understand why these crises happen. It shows that financial crises can hurt more than just banks, so central banks might need to help other parts of the economy too.