Three Cures for Three Crises
Since late summer, policy makers been attempting to manage the slow-moving financial crisis triggered by the collapse of America’s housing bubble. The cure depends on which of three modes define the fall in asset prices.
https://prosyn.org/E6a19fp
A full-scale financial crisis is triggered by a sharp fall in the prices of a large set of assets that banks and other financial institutions own, or that make up their borrowers’ financial reserves. The cure depends on which of three modes define the fall in asset prices.