Risk and Liquidity (Clarendon Lectures in Finance)
In the Great Recession, the world has looked for leading economists to offer a new and better understanding of macroeconomic instability, as Keynes did in the Great Depression. In this book, Hyun Song Shin delivers what was needed. Step by step, he develops a new comprehensive understanding of how macroeconomic booms and busts can be derived from microeconomic forces in the banking system. This book should be recognized as a major contribution to macroeconomic theory. Roger Myerson., Nobel Laureate in Economics 2007, Glen A. Lloyd Distinguished Service Professor Department of Economics, University of Chicago This book is a "must-read" for students, scholars and policy makers who would like to decipher the subprime crisis. Hyun Shin has an extraordinary talent for designing simple models that explain complicated phenomena. Jean Charles Rochet, Professor of Economics, Toulouse School of Economics (TSE) Hyun Song Shin is one of the leading scholars on financial stability in the world. This book provides a very accessible summary of this work. It is essential reading for all academics and practitioners interested in financial crises. Franklin Allen, Nippon Life Professor of Finance and Economics, The Wharton School of the University of Pennsylvania and author of Understanding Financial Crises (OUP)