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A Historical Perspective on the Crisis of 2007–08

In: Financial Stability, Monetary Policy, and Central Banking

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  • Michael D. Bordo

    (Rutgers University)

Abstract

This paper provides a historical perspective on the current crisis, contrasting the old with the modern. We identify the growth of the nonbank financial sector (a shadow banking system) that was not regulated by the central bank or covered by the financial safety net as a key modern twist, compared to other crises. We also offer some lessons for monetary policy on key issues of liquidity, solvency, and the stability of the real economy.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michael D. Bordo, 2011. "A Historical Perspective on the Crisis of 2007–08," Central Banking, Analysis, and Economic Policies Book Series, in: Rodrigo Alfaro (ed.),Financial Stability, Monetary Policy, and Central Banking, edition 1, volume 15, chapter 2, pages 011-027, Central Bank of Chile.
    • Handle: RePEc:chb:bcchsb:v15c02pp011-027
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    References listed on IDEAS

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    1. Ben S. Bernanke & Mark Gertler, 2001. "Should Central Banks Respond to Movements in Asset Prices?," American Economic Review, American Economic Association, vol. 91(2), pages 253-257, May.
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    12. Michael Bordo & Andrew Filardo, 2005. "Deflation and monetary policy in a historical perspective: remembering the past or being condemned to repeat it? [‘The macroeconomics of low inflation’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(44), pages 800-844.
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