Financial Macroeconomics: Putting Goldman Sachs into a Ramsey Model
|Speaker:||Professor David Vines, Economics Department and Balliol College, Oxford University; Centre for Applied Macroeconomic Analysis, Australian National University; and CEPR|
|Date:||Friday 14 May 2010|
This paper discusses the role of a highly-leveraged financial system in precipitating the global financial crisis. It suggests how, with such a financial system, a small shock - to the US housing market - caused a huge crisis - in the entire global financial system.