1. What were the main reasons behind the financial crisis of 2007-2008? Could central banks and financial regulators have avoided the crisis? 

2. Evaluate the following claim: "Excessive levels of debt may pose a threat to macroeconomic stability". That is, discuss why or why not this may be true. 

3. Describe unconventional monetary policy measures taken by governments during the global financial crisis. Use the IS-LM model to show the negative effects of the financial crisis on the economy and how policy responses could mitigate the severity of the recession.

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1 What were the main reasons behind the financial crisis of 20072008 Could central banks and financial regulators have avoided the situation The financial crisis of 20072008 was caused by a complex in... View the full answer