Title

Balance Sheet Crises: Causes, Consequences, and Responses

Document Type

Article

Publication Date

2013

Abstract

A case study is presented on the topic of balance sheet crises. The authors examine the preliminary events and consequences of the U.S. housing bubble and collapse, argue that the 1929 Great Depression and the Great Recession of 2007 were household-bank balance sheet crises, and fiscal responses to financial crises. It discusses housing, mortgage credit, and foreign capital inflows prior to the Great Depression and Great Recession, gross domestic product (GDP), and securities and mortgage rules.

Comments

This article was originally published in Cato Journal, volume 33, issue 3, in 2013.

Copyright

Cato Institute