The Credit Crisis: Conjectures about the Causes and Remedies

Douglas W. Diamond and Raghuram G. Rajan

What caused the financial crisis that is sweeping across the world? What keeps asset prices and lending depressed? What can be done to remedy matters? While it is too early to arrive at definite answers to these questions, it is certainly time to offer informed conjectures, and these will be the focus of our paper.

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