Crises: Equilibrium Shifts and Large Shocks
نویسندگان
چکیده
منابع مشابه
FINANCIAL CRISES AND LIQUIDITY SHOCKS: A Bank-Run Perspective
This note is motivated by trying to understand the macroeconomic implications of assuming that periods of financial bonanza and turmoil are driven by financial innovation and collapse in line with the “bank run” literature of the Diamond-Dybvig (1983) variety. Bypassing a host of important but, for the present purposes, secondary details the note assumes that the initial effects of financial in...
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(a) Why do we single out this intersection and call the price there “equilibrium price”? What makes this price different from other prices, and what do we mean by equilibrium?ANSWER. This special price at the intersection is the market clearing price. It is (usually) the only price at which the quantity demanded of the good is equal to the quantity supplied. We (economists) tend to believe that...
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ژورنال
عنوان ژورنال: American Economic Review
سال: 2019
ISSN: 0002-8282
DOI: 10.1257/aer.20170159