Financial Innovation, the Discovery of Risk, and the U.S. Credit Crisis /

Uncertainty about the riskiness of new financial products was an important factor behind the U.S. credit crisis. We show that a boom-bust cycle in debt, asset prices and consumption characterizes the equilibrium dynamics of a model with a collateral constraint in which agents learn "by observat...

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Détails bibliographiques
Auteur principal: Mendoza, Enrique
Autres auteurs: Boz, Emine
Format: Revue
Langue:English
Publié: Washington, D.C. : International Monetary Fund, 2010.
Collection:IMF Working Papers; Working Paper ; No. 2010/164
Accès en ligne:Full text available on IMF