The Academic Analysis of the 2008 Financial
The Academic Analysis of the 2008 Financial Crisis: Round 1 1. Matthew Spiegel
+ Author Affiliations 1. Yale School of Management 1. Send correspondence to Matthew Spiegel, Yale School of Management, P.O. Box 208200, New Haven, CT 06880-8200, telephone: 203-432-6017, email: matthew.spiegel@yale.edu. Next Section
Abstract
Academics responded to the challenges posed by the 2008 financial crisis with a flurry of studies. This collection of articles is just the academic community's first look into it. The articles begin with an examination at the last national housing price crash: the great depression of the 1930s. This is followed by articles looking at the current mortgage market and how it behaved. Did modern innovations reflect or add to the downturn? The next set of papers examines how non-financial firms were impacted by the crash. To what degree did credit worthy firms nevertheless find themselves without access to capital? The papers then end with a look into how the banking sector itself fared throughout this period.
JEL
JEL codes * -------------------------------------------------
G10
* -------------------------------------------------
G20
* -------------------------------------------------
G30
In 2008 the financial markets froze. Firms suddenly discovered that they could no longer roll over their corporate paper, a normally very liquid and easy-to-issue security. Banks stopped lending to each other in fear they would never be paid back. Government officials asked Congress for both the authority and funds to fill in for the now absent credit markets. Congress complied, and thus was born the Troubled Asset Relief Program (TARP), an institution that lives on over two years later. What caused the markets to freeze? How was the non-financial sector affected? Did government actions help? What can or should be done in the event another, similar crisis hits? Can anything be done to avert the chance that we see another?
+ Author Affiliations 1. Yale School of Management 1. Send correspondence to Matthew Spiegel, Yale School of Management, P.O. Box 208200, New Haven, CT 06880-8200, telephone: 203-432-6017, email: matthew.spiegel@yale.edu. Next Section
Abstract
Academics responded to the challenges posed by the 2008 financial crisis with a flurry of studies. This collection of articles is just the academic community's first look into it. The articles begin with an examination at the last national housing price crash: the great depression of the 1930s. This is followed by articles looking at the current mortgage market and how it behaved. Did modern innovations reflect or add to the downturn? The next set of papers examines how non-financial firms were impacted by the crash. To what degree did credit worthy firms nevertheless find themselves without access to capital? The papers then end with a look into how the banking sector itself fared throughout this period.
JEL
JEL codes * -------------------------------------------------
G10
* -------------------------------------------------
G20
* -------------------------------------------------
G30
In 2008 the financial markets froze. Firms suddenly discovered that they could no longer roll over their corporate paper, a normally very liquid and easy-to-issue security. Banks stopped lending to each other in fear they would never be paid back. Government officials asked Congress for both the authority and funds to fill in for the now absent credit markets. Congress complied, and thus was born the Troubled Asset Relief Program (TARP), an institution that lives on over two years later. What caused the markets to freeze? How was the non-financial sector affected? Did government actions help? What can or should be done in the event another, similar crisis hits? Can anything be done to avert the chance that we see another?