Econ 2035 Quiz
Econ 2035
CHAPTER 9: FINANCIAL CRISES AND
THE SUBPRIME MELTDOWN
Outline Want to answer the following ques9ons: • Why the financial crisis occur? • Why have financial crises been so prevalent throughout U.S. history and in other countries? • What insights do they provide on the current crisis? • Why are financial crises almost always followed by severe contrac9ons in economic ac9vity? 1
Financial Crisis • Key factor = Asymmetric informa9on
CHAPTER 9: FINANCIAL CRISES AND
THE SUBPRIME MELTDOWN
Outline Want to answer the following ques9ons: • Why the financial crisis occur? • Why have financial crises been so prevalent throughout U.S. history and in other countries? • What insights do they provide on the current crisis? • Why are financial crises almost always followed by severe contrac9ons in economic ac9vity? 1
Financial Crisis • Key factor = Asymmetric informa9on