Description: This course will explore the dramatic financial and macroeconomic developments that the United States has experienced over the last two decades. We will look at research on what factors precipitated the boom and bust in the housing market in the early 2000s and how the resulting mortgage crisis rippled through the global financial system and ultimately generated the most severe economic downturn since the Great Depression. We will analyze the policies put in place to stabilize the financial system, limit the economic fallout, and reduce the likelihood of future financial crises. The course will then turn to the macroeconomic developments that have occurred in the two years since the onset of the COVID-19 pandemic—including near-financial crisis of March 2020, the massive displacement of workers in the early part of the pandemic, and the largely unexpected burst of inflation in 2021. We will consider how the policy response to these events built on learnings from the Great Recession, how and why it differed, and what lessons to take for the future.
Recommended Prep: Ec1010b, Econ 1011b, or permission of the instructor.
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