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.
Recommended Citation
Gjerstad, S., & Smith, V.L. (2013). Balance sheet crises: Causes, consequences, and responses. Cato Journal, 33(3) 437 - 470.
Copyright
Cato Institute
Comments
This article was originally published in Cato Journal, volume 33, issue 3, in 2013.