José Manuel González-Páramo: Monetary and fiscal policies in times of crisis
نویسندگان
چکیده
The economic literature provides useful insights into the nature and causes of the current crisis. I am thinking in particular of the literature highlighting the fragility of equilibria and the possibility of self-fulfilling prophecies. A literature that includes the seminal work of Diamond and Dybvig (1983) on bank runs, which has inspired a large number of papers dealing with financial crises like the present one. Equally relevant has been the large literature on selffulfilling sovereign debt crises, building on papers like Calvo (1988) and Cole and Kehoe (2000), as well as the literature on public debt sustainability and fiscal and monetary policy interactions, including Leeper (1991, 2011) among others.
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