Financial panic and credit disruptions in the 2007-09 crisis

Blog: Ben Bernanke's Blog

Abstract

At the height of the financial crisis a decade ago, economists and policymakers underestimated the depth and severity of the recession that would follow. I argue in a paper released today by the Brookings Papers on Economic Activity (BPEA) that remedying this failure demands a more thorough inclusion of credit-market factors in models and forecasts…