The Financial Crisis and Macroeconomic Activity: 2008-2013

Fair, Ray C.

doi:10.2139/ssrn.2416825

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The Financial Crisis and Macroeconomic Activity: 2008-2013

Cowles Foundation Discussion Paper No. 1944

45 Pages Posted: 29 Mar 2014 Last revised: 18 Feb 2015

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

Date Written: February 17, 2015

Abstract

This paper provides estimates of the effects of the fall in financial and housing wealth in 2008-2009 on overall macroeconomic activity. These effects are large and account for a large fraction of the slowdown in activity. Much of the 2008-2009 recession is estimated to be simply standard wealth effects at work.

Keywords: Financial crisis, Wealth effects

JEL Classification: E32, E37

Suggested Citation: Suggested Citation

Fair, Ray C., The Financial Crisis and Macroeconomic Activity: 2008-2013 (February 17, 2015). Cowles Foundation Discussion Paper No. 1944, Available at SSRN: https://ssrn.com/abstract=2416825 or http://dx.doi.org/10.2139/ssrn.2416825