Haircuts [report]

Gary Gorton, Andrew Metrick
2009 unpublished
When "confidence" is lost, "liquidity dries up." We investigate the meaning of "confidence" and "liquidity" in the context of the current financial crisis. The financial crisis is a manifestation of an age-old problem with private money creation, banking panics. We explain this and provide some evidence with respect to the current crisis.
doi:10.3386/w15273 fatcat:62qk737nh5d6bozzbkxjccyji4