“Getting up to Speed on the Financial Crisis”
Gorton & Metrick (2012), “Getting up to Speed on the Financial Crisis: A One‐Weekend‐Reader’s Guide“. JEL.
Literature review focusing on empirical work that examines the recent financial crisis and surrounding issues. The authors survey 16 papers, which, read together, provide an answer to the question: what happened?
The papers suggested cover: the timeline of the crisis; historical background; crisis build-up; the panics; policy responses; and real effects of the crisis. Of particular interest is the development of the shadow banking sector, which was the key “vulnerability” that was impacted by problems in the quantitatively small US subprime mortgage market, and the development of what could be described as “classic” financial crisis dynamics (e.g., housing bubble, explosion of credit, (shadow) bank runs, etc).