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Review Of Theories of Financial Crises

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  • Assaf Razin

    (Tel Aviv University)

  • Itay Goldstein

    (University of Pennsylvania)

Abstract

The last few years have been characterized by great turmoil in the world’s financial markets; starting from the collapse of housing prices in the US, followed by the meltdown of leading financial institutions in the US and Europe, and then the ongoing challenge to the European monetary union. These events exhibit ingredients from all types of financial crises in recent history: banking crises, currency crises, credit frictions, market freezes, and the bursting of asset bubbles. In this survey, we provide a review of the analytical underpinnings of these types of crises and the directions in which they influenced future literature and the way they explain recent events.

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  • Assaf Razin & Itay Goldstein, 2012. "Review Of Theories of Financial Crises," 2012 Meeting Papers 214, Society for Economic Dynamics.
    • Handle: RePEc:red:sed012:214
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    1. Galina Hale & Assaf Razin & Hui Tong, 2012. "The Impact of Creditor Protection on Stock Prices in the Presence of Liquidity Crises: Theory and Cross-country Evidence," CESifo Working Paper Series 3765, CESifo.

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