The Financial Crisis of 2007-2008 and its Macroeconomic Consequences

  title={The Financial Crisis of 2007-2008 and its Macroeconomic Consequences},
  author={J. E. Stiglitz},
Information and incentive problems played important roles in the financial market scandals of the late 90s (exemplified by Enron/Worldcom) and in the financial crisis of 2007/2008. In my book Roaring Nineties, I provide an interpretation of the market scandals of the late nineties and early years of this century. Here, I want to provide a similar interpretation of the 2007/2008 crisis and a critique of the policy responses. The analysis here is motivated in part by observations of a large… 

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