The final exam is a proper subset of the questions below. Please note some questions overlap.
1.
Each of the following statements is false (or not quite true). Write a short essay for each one explaining why it is false. a.
Hetzel argues disorder in credit markets turned a moderate recession into the Great
Recession. b.
Stock and Watson argue that the Great Recession was special, in that new shocks buffeted the economy in new ways.
2.
According to Case and Shiller, was there a bubble in the housing market? What evidence did they adduce to make their case?
3.
According to Reinhart and Rogoff, was the U.S subprime financial crisis predictable? What were the five warning signs?
4.
In the Schularick and Taylor article, what were the research questions? What was the general approach to answering these questions? What were the answers? Would they say the financial crises-cum-recession was predictable? Explain.
5.
What are the four potential explanations for the anemic recovery from the 2007-2009 recession?
Explain.
1