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Financial Crises

  • To Prevent Financial Crises, Regulate Short-Term Debt

    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. 
    A run on the National Penny Bank in London in 1888. Image: Universal History Archive/Universal Images Group via Getty Images.
  • Lessons for the Crisis Fighters

    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. 
  • Did Culture Cause the Financial Crisis?

    Nobel Laureate Robert J. Shiller says that an event on the magnitude of the 2008-2009 financial crisis has to have many causes, but he sees “the spirit of the times” as a driving force behind many of them. In a lecture at Yale SOM, he described how he sees this spirit acting in everything from Fed policy to the growth in casinos.