This paper surveys the theoretical and empirical literature on the macroeconomic
implications of financial imperfections. It focuses on two major channels through which …

The United States is currently in the throes of an acute liquidity and credit crunch, by all
accounts, the severest financial crisis since the Great Depression. The roots of this crisis lie …

Economists both failed to predict the global financial crisis and underestimated its
consequences for the broader economy. Focusing on the second of these failures, this …

The financial crisis of 2007 to 2009 has given renewed impetus to the study of financial
frictions and their impact on macroeconomic activity. Economists have refined existing …

This paper reviews the theoretical literature at the intersection of macroeconomics and
finance to draw lessons on the connection between vulnerabilities in the financial system …

A concern for policymakers is the possibility of an impairment of financial intermediation that
arises when banks' balance sheets are weakened and banks are unwilling or unable to …

This lecture examines the causes of the recent financial crisis and subsequent recession. On
the macroeconomic side, the Great Moderation encouraged an overly optimistic assessment …

Understanding phenomena such as the recent financial crisis, and possible policy
responses, requires the use of a macroeconomic framework in which financial …

This paper uses the canonical New Keynesian macroeconomic model—augmented with the
standard financial accelerator mechanism—to study the extent to which disruptions in …

This paper investigates the underlying credit market shocks that historically affected
business investment in the Slovenian economy. In contrast to the existing literature, we …