The 2008 Financial Crisis
The financial crisis was a globally connected episode where confidence in and between banks evaporated, leading to a sharp and prolonged impact on public and private-sector balance sheets. The connectivity and interdependency between banks made the crisis escalate rapidly, leading to severe outcomes. Global growth went into reverse and no area of the world was spared. The eye of the storm was the collapse of Lehman Brothers and related events, but the seeds were sown many years before.
Key learning objectives:
Define the 2008 Global Financial Crisis
Define the Keynesian market economy
Define the pre-crisis ecosystem
What were the factors in the ecosystem that led to the crisis?
How did the interaction of agents and factors sow the seeds of doom and lead to the crisis?
