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The Financial Crisis: Toward an Explanation and Policy Response

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  • Aaron Steelman
  • John A. Weinberg

Abstract

This article discusses the key events of the financial crisis, examines which factors contributed to it, and considers how policymakers might most effectively respond. At the core of their discussion is the role that explicit and implicit government guarantees played in encouraging unwise risk-taking by financial institutions.

Suggested Citation

  • Aaron Steelman & John A. Weinberg, 2015. "The Financial Crisis: Toward an Explanation and Policy Response," Economic Quarterly, Federal Reserve Bank of Richmond, issue 1Q, pages 5-21.
    • Handle: RePEc:fip:fedreq:00026
    DOI: 10.21144/eq1010102
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    References listed on IDEAS

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    3. Fumio Hayashi & Edward C. Prescott, 2002. "The 1990s in Japan: A Lost Decade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(1), pages 206-235, January.
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    8. Thomas M. Humphrey, 1989. "Lender of last resort: the concept in history," Economic Review, Federal Reserve Bank of Richmond, vol. 75(Mar), pages 8-16.
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    Cited by:

    1. Fang, Libing & Yu, Honghai & Li, Lei, 2017. "The effect of economic policy uncertainty on the long-term correlation between U.S. stock and bond markets," Economic Modelling, Elsevier, vol. 66(C), pages 139-145.

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