Prof. Andrew Metrick, director of the Yale Program on Financial Stability, says that fighting a crisis is different from economic policymaking in normal times; governments need to be exceptionally generous and not get bogged down in stringent processes that keep money from getting to those in need.
In an online conversation, Yale faculty members discussed the steps already taken to prevent the COVID-19 crisis from turning into economic catastrophe, and the need for more effective healthcare policies.
In an online event hosted by the Bank for International Settlement, Andrew Metrick, director of the Yale Program on Financial Stability, discussed the actions that governments have already taken to prevent the COVID-19 pandemic from sparking a full-blown financial crisis, and the challenges still to come.
Nobel Prize-winning Yale economist Robert Shiller examines how the stories we tell about our lives and our society can spread from person to person, changing shared perceptions of events and shaping economic behavior.
Yale SOM’s Gary Gorton argues that financial crises happen because short-term lending, while essential to the economy, is also vulnerable to panic when parties lose confidence in each other. In a new paper, Gorton proposes a method of regulating short-term debt and preventing future crises.
Leverage-induced fire sales contributed to the worst stock market crashes in history. Prof. Kelly Shue studied account-level data from the Chinese market crash in 2015 to illuminate how much leverage matters.
Yale SOM’s Andrew Metrick and the Yale Program on Financial Stability are studying the global financial crisis of 2007-09, working to create the knowledge and tools to prepare the next generation of policymakers who find themselves in the eye of a monetary maelstrom.