The World Credit Crisis: Understanding It, and What To Do
AbstractThis paper expounds a story in four stages to explain the world credit crisis, namely: (1) too much credit - an international perspective, (2) too much risk - reaction to low real interest rate, (3) the fatal flaw - the new complex financial instruments, and (4) the panic- bank lending dries up. The paper also discusses the relationship of this crisis to the often-expected crisis of the global imbalances, and it outlines various policy implications.
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Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2008n25.
Length: 23 pages
Date of creation: Dec 2008
Date of revision:
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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- W. Max Corden, 2007. "Those Current Account Imbalances: A Sceptical View -super-1 ," The World Economy, Wiley Blackwell, vol. 30(3), pages 363-382, 03.
- Richard Pomfret, 2009.
"The Financial Sector and the Future of Capitalism,"
School of Economics Working Papers
2009-05, University of Adelaide, School of Economics.
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