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The global financial crisis: Causes and consequences

Stoeckel, Andrew; McKibbin, Warwick

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This paper models the global financial crisis as a combination of shocks to global housing markets and sharp increases in risk premia of firms, households, and international investors; and finds that the shocks observed in financial markets can generate in the in the G-Cubed model (an intertemporal global model) the severe economic contraction in global trade and production currently being experienced in 2009. Our investigation shows that the distinction between the production and trade of...[Show more]

dc.contributor.authorStoeckel, Andrew
dc.contributor.authorMcKibbin, Warwick
dc.date.accessioned2015-12-10T22:14:07Z
dc.identifier.issn1535-3516
dc.identifier.urihttp://hdl.handle.net/1885/50117
dc.description.abstractThis paper models the global financial crisis as a combination of shocks to global housing markets and sharp increases in risk premia of firms, households, and international investors; and finds that the shocks observed in financial markets can generate in the in the G-Cubed model (an intertemporal global model) the severe economic contraction in global trade and production currently being experienced in 2009. Our investigation shows that the distinction between the production and trade of durable and non-durable goods plays a key role in explaining the much larger contraction in trade than GDP experienced by most economies; and that the future of the global economy depends critically on whether the shocks to risk are expected to be permanent or temporary.
dc.publisherMIT Press
dc.sourceAsian Economic Papers
dc.titleThe global financial crisis: Causes and consequences
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume9
dc.date.issued2010
local.identifier.absfor140212 - Macroeconomics (incl. Monetary and Fiscal Theory)
local.identifier.absfor140210 - International Economics and International Finance
local.identifier.ariespublicationf2965xPUB198
local.type.statusPublished Version
local.contributor.affiliationMcKibbin, Warwick, College of Asia and the Pacific, ANU
local.contributor.affiliationStoeckel, Andrew, College of Asia and the Pacific, ANU
local.description.embargo2037-12-31
local.bibliographicCitation.issue1
local.bibliographicCitation.startpage54
local.bibliographicCitation.lastpage86
local.identifier.doi10.1162/asep.2010.9.1.54
dc.date.updated2015-12-09T08:03:56Z
local.identifier.scopusID2-s2.0-77952087194
local.identifier.thomsonID000276979900009
CollectionsANU Research Publications

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