The Credit Crisis: Conjectures about Causes and Remedies
What caused the financial crisis that is sweeping across the world? What keeps asset prices and lending depressed? What can be done to remedy matters? While it is too early to arrive at definite answers to these questions, it is certainly time to offer informed conjectures, and these are the focus of this paper.
Diamond and Rajan acknowledge support from the Center for Research on Securities Prices at the University of Chicago's Booth School of Business. Rajan also acknowledges support from the Initiative on Global Markets and the Stigler Center at the Booth School. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Douglas W. Diamond & Raghuram G. Rajan, 2009. "The Credit Crisis: Conjectures about Causes and Remedies," American Economic Review, American Economic Association, vol. 99(2), pages 606-10, May. citation courtesy of