Lecture 4 Slides

Lecture 4 Slides - Economics 134 Spring 2012 Christina...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
L ECTURE 4 The Great Recession January 26, 2012 Economics 134 Christina Romer Spring 2012 David Romer
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Great Recession Time Line Dec. 2007: NBER Peak Aug. 2007: Countrywide almost defaults. Fed drops discount rate ½ pp. Sept. 7, 2008: Take over of GSEs Sept. 15, 2008: Collapse of Lehman Bros. 2007 2008 2009 Feb. 2008: Economic Stimulus Act of 2008 ($152b) Feb. 2009: American Recovery and Reinvestment Act ($787b) Jun. 2009: NBER Trough Oct. 2008: TARP ($700b ) May 2009: Stress Test results reported March 2008: Facilitated takeover of Bear Stearns
Background image of page 2
I. R UN -U P TO THE G REAT R ECESSION
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The 2001 recession was the smallest since 1947.
Background image of page 4
Interest rates didn’t rise much before the 2001 recession. 0 2 4 6 8 10 12 14 16 18 20 1954-07 1956-08 1958-09 1960-10 1962-11 1964-12 1967-01 1969-02 1971-03 1973-04 1975-05 1977-06 1979-07 1981-08 1983-09 1985-10 1987-11 1989-12 1992-01 1994-02 1996-03 1998-04 2000-05 2002-06 2004-07 2006-08 Percent Federal Funds Rate
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Tech bubble burst in early 2000. NASDAQ Composite Index 1994-2005
Background image of page 6
House prices rose dramatically in the mid-2000s.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Financial innovation
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 42

Lecture 4 Slides - Economics 134 Spring 2012 Christina...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online