The Crisis

The purpose of this lecture is to look beyond the complex events that characterize the global financial and economic crisis, identify the basic mechanisms, and infer the policies needed to resolve the current crisis, as well as the policies needed to reduce the probability of similar events in the future.Credit;Liquidity;Housing prices;Financial instruments;Financial institutions;Emerging markets;Credit risk;capital outflows, stock market, securitization, government bonds, financial system, stock market capitalization, financial stability, stock prices, bonds, money markets, capital ratio, stock markets, world stock market, credit rationing, municipal bonds, present value, domestic credit, derivative securities, hedge funds, capital inflows, stock price indexes, hedge, subsidiaries, liquidity crises, financial innovation, financial intermediation, stock price, capital controls, derivative, commodity prices, private investors, risk aversion, current account deficits, securities markets, financial markets, private capital, deposit insurance