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Macroeconomics in Times of Liquidity Crises – Searching for Economic Essentials - MIT Press Scholarship Online
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Macroeconomics in Times of Liquidity Crises: Searching for Economic Essentials

Guillermo A. Calvo


The book claims that liquidity issues are at the heart of recent financial crises, and their analysis helps to explain phenomena that are alien to mainstream macroeconomic models. To make this point, the book first reviews crisis episodes starting with Mexico's Tequila crisis in 1994/5 and including the Great Recession in developed-market economies. The narrative reveals wide gaps in conventional models and the existence of stubborn intellectual inertia in dealing with these crises. The book devotes an entire chapter to discussing liquidity, highlighting that resilience with respect to Liquidi ... More

Keywords: Financial Crises, Liquidity, Sudden Stop, Monetary Policy, Dollar, Emerging Markets

Bibliographic Information

Print publication date: 2016 Print ISBN-13: 9780262035415
Published to MIT Press Scholarship Online: May 2017 DOI:10.7551/mitpress/9780262035415.001.0001


Affiliations are at time of print publication.

Guillermo A. Calvo, author
Columbia University