PSCI 4356 Lecture Notes - Lecture 6: Great Moderation, Microsoft Onenote, Moral Hazard
24 May 2017
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April 2009 - eu orders france, spain, ireland, and greece to reduce budget deficits. October 2009 - papandreou"s socialist party wins elections. In may 2010, eurozone members and imf agree on a 110 billion bailout package, but the crisis continues: housing bubble. Bad monetary policy in the us (low interest rates) Financial innovations: lowered interest rates from 2001 tech stock crash, securitizations, collateralized debt obligations, obscured risks. One big predictor of the crisis: ratio of bank claims on private sector over deposits.
