This course will examine historical financial crises from around the world, using standard macroeconomic theories. We will then use this historical knowledge of crises to carefully analyze the Great Recession (December 2007-June 2009), its causes, and what was done to encourage recovery. This will include analysis of monetary and fiscal responses as well as the precrisis policy environment. Some of the topics that will be covered to properly analyze the financial crises include currency crises, IS/MP models, bank runs, liquidity, leverage, quantitative easing (QE), Troubled Asset Relief Program, mortgage-backed securities, subprime lending, risk premium, Taylor rule, fiscal stimulus, and aggregate supply/aggregate demand. |