FIN 254f(2): Financial Manias and Crises
- Some bubble theories and taxonomy
- Bubbles: Definitions and mechanisms
Kindleberger and Aliber, chapter 2-3.
- Types of bubbles
Reinhardt/Rogoff chapter 1.
- The contribution of credit
Kindelberger chapter 4, Reinhart and Rogoff, chapter 2
- Old classic bubbles
Kindleberger and Aliber, chapter 1,6-7.
Garber, Famous First Bubbles, Journal of Economic Perspectives .
Frehen, Goetzmann, and Rouwenhorst, New Evidence on the First Financial Bubble,
NBER wp 15332, 2009.
- Banking crises and middle history
Reinhart and Rogoff, chapters 10-12
(B) Allen and Gale, Understanding Financial Crises, chapter 1.
- Stock markets and an introduction to international contagion
Shiller, chapter 1.
Kindleberger and Aliber, chapter 8.
Cutler, Poterba, and Summers, What moves stock prices?, Journal of Portfolio Management 1989:4-12.
Stock markets and real estate
- Real estate
Shiller, chapter 2.
- History, stories, and amplification mechanisms
Shiller, chapter 3-7.
History and stories
- Macro connections
Claessens, Kose, and Terrones, What happens during recessions, crunches and busts, IMF working paper, 08/274.
(B) Gorton, Banking panics and business cycles, Oxford Economic Papers, 40, 751-781.
- Psychological foundations
Shiller, chapter 8-9.
Nofsinger, chapters 1, 2-5.
- Bubbles in the laboratory
Porter and Smith, Stock market bubbles in the laboratory, Journal of Behavioral Finance ,
2003: 4, pp 7-20.
- Crisis of 2008-2009, descriptions and historical perspectives
*Reinhart and Rogoff 13-14.
Brunnermeier, Deciphering the 2007-2008 liquidity and credit crunch, Journal of Economic
Perspectives, 23, 77-100.
Gorton, Slapped in the Face by the invisible hand: Banking and the Panic of 2007.
*Gorton, Questions and answers about the financial crisis, NBER working paper 15787, 2010.
(B) Adrian and Shin, The Shadow Banking System: Implications for financial regulation, Federal
Reserve Board of New York, Staff Reports, 2009.
*(skim)Jagannathan, Kapoor, and Schaumburg, Why are we in a recession? The financial crisis is the symptom
not the disease!, NBER working paper 15404, 2009.
*Gjerstad and Smith, From Bubble to Depression, WSJ, April 6, 2009.
*Greenspan, The Crisis, 2010.
*Acharya, Cooley, Richardson, and Walter, Manufacturing tail risk: A perspective on the financial
crisis of 2007-09, 2010, NYU working paper.
Crisis lecture notes
- Contagion and networks
Reinhart and Rogoff, 15-16.
Nofsinger, chapter 8.
Haldane, Rethinking the financial network, Bank of England, 2009.
- Simulating financial crises: An introduction to agent-based models