The experiences of a few US states in weathering the ongoing economic turmoil could provide some insight into the Eurozone’s struggles. In particular, Florida, Arizona, and Nevada along the US Sun Belt saw a big housing bubble and subsequent bust, much like Greece, Ireland, and Spain along Europe’s periphery, a group we call ‘Club Med’.
Club Med and the Sun Belt: Lessons from adjustment within a monetary union
Uri Dadush, Zaahira Wyne, Shimelse Ali, 24 July 2012
The Spanish hangover
Cinzia Alcidi, Daniel Gros, 15 April 2012
What is the problem in Spain? It started with a classic housing bubble financed by foreign capital, and as a textbook would predict, once the inflow of foreign capital stopped and the bubble burst, unemployment soared and the financial system went bust as well (Reinhart 2008).
Housing bubbles and interest rates
Christian Hott, Terhi Jokipii, 29 March 2012
In the aftermath of the recent global financial crisis, central banks have been widely criticised for having kept interest rates too low for too long.
Quantifying the triggers of subprime mortgage defaults
Sean Chu, Patrick Bajari, Minjung Park, 2 February 2009
Editors’ note: The following views are the personal views of the authors and do not necessarily reflect the positions of the Federal Reserve System.
Financial crisis management: Lessons from Japan’s failure
Keiichiro Kobayashi, 27 October 2008
The current crisis in the US and European financial systems seems to be growing similarly to Japan’s banking crisis of the late 1990s and early 2000s. Although the current crisis developed much faster1 than Japan’s crisis, the key mechanism is the same – changes in the prices of real estate that were used as collateral for bank lending.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Do entrepreneurs matter?Becker, Hvide
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
CEPR Policy Research
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí