Macroeconomics and Crises

ECO 4006

The 2008 world financial crisis was a devastating shock to many nations’ economies. One of the interesting things about crises is that each one is different from the last; we can never be sure about the form the next crisis will take. So the reason that economists disagree about how to explain crises may be because there is no single cause. This course investigates many aspects of crises in general. Moreover, this course investigates in detail each of the recognized types of crises: currency crises, debt crises, banking crises, asset price bubbles, and sudden stops. We will analyze whether predicting such crises is possible or the best that can be done is to indicate when economies are more prone to crises.