Financial Crises Syllabus

Rey, H. (2015). Dilemma not trilemma: the global financial cycle and monetary policy independence.

Salomao, J., & Varela, L. (2022). Exchange rate exposure and firm dynamics. The Review of Economic Studies.

Aguiar, M. (2005). Investment, devaluation, and foreign currency exposure: The case of Mexico. Journal of Development Economics.

Verner, E., & Gyöngyösi, G. (2020). Household debt revaluation and the real economy: Evidence from a foreign currency debt crisis. American Economic Review.

Bocola, L., & Lorenzoni, G. (2020). Financial crises, dollarization, and lending of last resort in open economies. American Economic Review.

Kalantzis, Y. (2015). Financial fragility in small open economies: firm balance sheets and the sectoral structure. The Review of Economic Studies.

Schneider, M., & Tornell, A. (2004). Balance sheet effects, bailout guarantees and financial crises. The Review of Economic Studies.

Lorenzoni, G. (2014). International financial crises. Handbook of international economics.

(*) Krugman, P. (1999). Balance sheets, the transfer problem, and financial crises. International tax and public finance.

Auclert, A., Dobbie, W. S., & Goldsmith-Pinkham, P. (2019). Macroeconomic effects of debt relief: Consumer bankruptcy protections in the great recession.

Ganong, P., & Noel, P. (2020). Liquidity versus wealth in household debt obligations: Evidence from housing policy in the great recession. American Economic Review.

Baker, S. R. (2018). Debt and the response to household income shocks: Validation and application of linked financial account data. Journal of Political Economy.

(*) Di Maggio, M., Kermani, A., Keys, B. J., et al. (2017). Interest rate pass-through: Mortgage rates, household consumption, and voluntary deleveraging. American Economic Review.

Mian, A., Sufi, A., & Verner, E. (2020). How does credit supply expansion affect the real economy? the productive capacity and household demand channels. The Journal of Finance.

Mian, A., Rao, K., & Sufi, A. (2013). Household balance sheets, consumption, and the economic slump. The Quarterly Journal of Economics.

Mian, A., & Sufi, A. (2014). What explains the 2007–2009 drop in employment? Econometrica.

Mishkin, F. S. (1978). The household balance sheet and the Great Depression. The Journal of Economic History.

King, M. (1994). Debt deflation: Theory and evidence. European Economic Review.

Jordà, Ò., Schularick, M., & Taylor, A. M. (2016). The great mortgaging: housing finance, crises and business cycles. Economic policy.

Mian, A., Sufi, A., & Verner, E. (2017). Household debt and business cycles worldwide. The Quarterly Journal of Economics.

Auclert, A. (2019). Monetary policy and the redistribution channel. American Economic Review.

Iacoviello, M. (2005). House prices, borrowing constraints, and monetary policy in the business cycle. American economic review.

Farhi, E., & Werning, I. (2016). A theory of macroprudential policies in the presence of nominal rigidities. Econometrica.

Schmitt-Grohé, S., & Uribe, M. (2016). Downward nominal wage rigidity, currency pegs, and involuntary unemployment. Journal of Political Economy.

Eggertsson, G. B., & Krugman, P. (2012). Debt, deleveraging, and the liquidity trap: A Fisher-Minsky-Koo approach. The Quarterly Journal of Economics.

Korinek, A., & Simsek, A. (2016). Liquidity trap and excessive leverage. American Economic Review.

(*) Mian, A., Straub, L., & Sufi, A. (2021). Indebted demand. The Quarterly Journal of Economics.

(*) Jiang, E. X., Matvos, G., Piskorski, T., et al. (2024). Monetary tightening and US bank fragility in 2023: Mark-to-market losses and uninsured depositor runs? Journal of Financial Economics.

Kashyap, A. K., & Stein, J. C. (2023). Monetary policy when the central bank shapes financial-market sentiment. Journal of Economic Perspectives.

Drechsler, I., Savov, A., & Schnabl, P. (2021). Banking on deposits: Maturity transformation without interest rate risk. The Journal of Finance.

Begenau, J., & Stafford, E. (2022). Uniform rate setting and the deposit channel. Available at SSRN.

Drechsler, I., Savov, A., & Schnabl, P. (2017). The deposits channel of monetary policy. The Quarterly Journal of Economics.

Jiménez, G., Ongena, S., Peydró, J.-L., et al. (2014). Hazardous times for monetary policy: What do twenty-three million bank loans say about the effects of monetary policy on credit risk-taking? Econometrica.

Kashyap, A. K., & Stein, J. C. (2000). What do a million observations on banks say about the transmission of monetary policy? American Economic Review.

Kashyap, A. K., Lamont, O. A., & Stein, J. C. (1994). Credit conditions and the cyclical behavior of inventories. The Quarterly Journal of Economics.

Ivashina, V., Laeven, L., & Moral-Benito, E. (2020). Loan types and the bank lending channel.

Amiti, M., & Weinstein, D. E. (2018). How much do idiosyncratic bank shocks affect investment? Evidence from matched bank-firm loan data. Journal of Political Economy.

(*) Chodorow-Reich, G. (2014). The employment effects of credit market disruptions: Firm-level evidence from the 2008–9 financial crisis. The Quarterly Journal of Economics.

Khwaja, A. I., & Mian, A. (2008). Tracing the impact of bank liquidity shocks: Evidence from an emerging market. American Economic Review.

Peek, J., & Rosengren, E. S. (2000). Collateral damage: Effects of the Japanese bank crisis on real activity in the United States. American economic review.

Coimbra, N., & Rey, H. (2024). Financial cycles with heterogeneous intermediaries. Review of Economic Studies.

Holmstrom, B., & Tirole, J. (1997). Financial intermediation, loanable funds, and the real sector. the Quarterly Journal of economics.

Brunnermeier, M., Correia, S., Luck, S., et al. (2025). The debt-inflation channel of the German (Hyper) inflation. American Economic Review.

Rajan, R., & Ramcharan, R. (2015). The anatomy of a credit crisis: The boom and bust in farm land prices in the United States in the 1920s. American Economic Review.

Chaney, T., Sraer, D., & Thesmar, D. (2012). The collateral channel: How real estate shocks affect corporate investment. American Economic Review.

Benmelech, E., Kumar, N., & Rajan, R. (2024). The decline of secured debt. The Journal of Finance.

Rampini, A. A., & Viswanathan, S. (2025). Collateral and secured debt.

(*) Lian, C., & Ma, Y. (2021). Anatomy of corporate borrowing constraints. The Quarterly Journal of Economics.

Gilchrist, S., & Zakrajšek, E. (2012). Credit spreads and business cycle fluctuations. American economic review.

Brunnermeier, M. K., & Sannikov, Y. (2014). A macroeconomic model with a financial sector. American Economic Review.

Kiyotaki, N., & Moore, J. (1997). Credit cycles. Journal of political economy.

Bernanke, B. S., & Gertler, M. (1986). Agency costs, collateral, and business fluctuations.

Correia, S., Luck, S., & Verner, E. (2026). Failing banks. The Quarterly Journal of Economics.

Baron, M., Verner, E., & Xiong, W. (2020). Banking Crises Without Panics*. The Quarterly Journal of Economics.

Beaudry, P., Galizia, D., & Portier, F. (2020). Putting the cycle back into business cycle analysis. American Economic Review.

Krishnamurthy, A., & Muir, T. (2025). How credit cycles across a financial crisis. The Journal of Finance.

Greenwood, R., Hanson, S. G., Shleifer, A., et al. (2022). Predictable financial crises. The Journal of Finance.

López-Salido, D., Stein, J. C., & Zakrajšek, E. (2017). Credit-market sentiment and the business cycle. The Quarterly Journal of Economics.

Greenwood, R., & Hanson, S. G. (2013). Issuer quality and corporate bond returns. The Review of Financial Studies.

Müller, K., & Verner, E. (2024). Credit allocation and macroeconomic fluctuations. Review of Economic Studies.

Schularick, M., & Taylor, A. M. (2012). Credit booms gone bust: monetary policy, leverage cycles, and financial crises, 1870–2008. American Economic Review.

(*) Sufi, A., & Taylor, A. M. (2022). Financial crises: A survey. Handbook of international economics.

Calomiris, C. W., & Mason, J. R. (2003). Fundamentals, panics, and bank distress during the depression. American Economic Review.

Gorton, G., & Metrick, A. (2012). Securitized banking and the run on repo. Journal of Financial economics.

Iyer, R., Puri, M., & Ryan, N. (2016). A tale of two runs: Depositor responses to bank solvency risk. The Journal of Finance.

Iyer, R., & Puri, M. (2012). Understanding bank runs: The importance of depositor-bank relationships and networks. American Economic Review.

(*) Bernanke, B. S. (1983). Non-monetary effects of the financial crisis in the propagation of the Great Depression.

Gorton, G., & Pennacchi, G. (1990). Financial intermediaries and liquidity creation. The Journal of Finance.

Goldstein, I., & Pauzner, A. (2005). Demand–deposit contracts and the probability of bank runs. the Journal of Finance.

Diamond, D. W. (1984). Financial intermediation and delegated monitoring. The review of economic studies.

Diamond, D. W., & Dybvig, P. H. (1983). Bank runs, deposit insurance, and liquidity. Journal of political economy.