Deciphering the Liquidity and Credit Crunch 2007-08

34 Pages Posted: 29 Dec 2008 Last revised: 5 Dec 2022

See all articles by Markus K. Brunnermeier

Markus K. Brunnermeier

Princeton University - Department of Economics

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Date Written: December 2008

Abstract

This paper summarizes and explains the main events of the liquidity and credit crunch in 2007-08. Starting with the trends leading up to the crisis, I explain how these events unfolded and how four different amplification mechanisms magnified losses in the mortgage market into large dislocations and turmoil in financial markets.

Suggested Citation

Brunnermeier, Markus Konrad, Deciphering the Liquidity and Credit Crunch 2007-08 (December 2008). NBER Working Paper No. w14612, Available at SSRN: https://ssrn.com/abstract=1320857

Markus Konrad Brunnermeier (Contact Author)

Princeton University - Department of Economics ( email )

Bendheim Center for Finance
Princeton, NJ
United States
609-258-4050 (Phone)
609-258-0771 (Fax)

HOME PAGE: http://www.princeton.edu/¡­markus

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