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Assignment:
Watch the following short video interview with former Fed Chair Ben Bernanke.
You can read the following blog post (Financial panic and credit disruptions in the 2007-09 crisis (brookings.edu) by Ben Bernanke to help you answer the following questions in your submission for this assignment.
a) What was the size of the contraction in the real economy during this crisis (2008-2009)? What was the percent change in real GDP from Dec. 2007 peak to June 2009 trough? What was the percent change in the coincident index from Dec. 2007 to June 2009?
b) What are the two primary channels that depressed economic activity during the 2008-2009 Great recession and financial crisis?
c) Which one does Ben Bernanke think was the most important channel?
d) What are the four stages of the crisis (refer to the blog post for this)?
750 words
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