Learning from and Responding to Financial Crisis - Financial Markets - Lawrence Summers - Lecture 26 of 26 - Video-lecture

Video-lecture, Corporate Finance

Description: Professor Summers points out that real interest rates have been very low in the current subprime crisis. This indicates that the shock to the economy was more a financial breakdown shock than a disinflation shock. But financial breakdown shocks are not necessarily very harmful to the economy, so long as financial intermediation capital is not destroyed.