Financial Crisis and Policy Response

• Why was the crisis so deep, broad and prolonged? What were the sources of market failure? How do we assess financial conditions in a crisis? How do we distinguish between liquidity and solvency threats? • What are the textbook responses to financial crises? Is there a conflict between the goals of financial stability and economic stabilization? • How well did central bank policy function? How did the crisis affect policy transmission? Can central banks be effective when policy rates hit zero? • What role has fiscal policy played in the crisis response? • How will this crisis alter the financial system and its oversight? How will those changes affect the evolution of business and the economy?