Working Paper: NBER ID: w17778
Authors: Gary B. Gorton; Andrew Metrick
Abstract: All economists should be conversant with "what happened?" during the financial crisis of 2007-2009. We select and summarize 16 documents, including academic papers and reports from regulatory and international agencies. This reading list covers the key facts and mechanisms in the build-up of risk, the panics in short-term-debt markets, the policy reactions, and the real effects of the financial crisis.
Keywords: financial crisis; 2007-2009; short-term debt markets; policy reactions; real effects
JEL Codes: A0; D0; E0; G0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| accelerations in economy-wide leverage (F65) | banking crises (G01) |
| systemic vulnerabilities in the financial sector (F65) | amplification of the crisis (H12) |
| credit supply shocks (E51) | real economic activity (E39) |
| bank vulnerabilities (G21) | reductions in lending (G21) |
| reductions in lending (G21) | corporate investment (G31) |
| reductions in lending (G21) | consumer lending (G21) |