Citation:
Brunnermeier, Markus K. “Deciphering the Liquidity and Credit Crunch 2007-2008”. Journal of Economic Perspectives 23 (2009): , 23, 77-100. Print.
 | liquidity_credit_crunch.pdf | 240 KB |
| liquidity_crunch_2007_08_slides.pdf | 1.05 MB |
| liquidity_credit_crunch_nber.pdf | 453 KB |
Number:
1Abstract:
This paper summarizes and explains the main events of the liquidity and credit crunch in 2007-08. Starting with the trends leading up to the crisis, I explain how these events unfolded and how four different amplification mechanisms magnified losses in the mortgage market into large dislocations and turmoil in financial markets.