The financial crises of the last twenty years brought new economic concepts into classrooms discussions. This article introduces undergraduate students and interested readers to ten of these models: (i) bubbles and beliefs (ii) capital flow and misallocation, (iii) modern and shadow banks, (iv) systemic risk, strategic complementarities and amplification, (v) solvency and liquidity, (vi) the diabolic loop, (vii) safe assets and flights to safety, (viii) exchange rate policies and speed of recoveries, (ix) unconventional monetary policy, and (x) fiscal policy and real interest rates. We apply each of the concepts to two historical examples.

Intro chapter (Link)

Teaching slides (PDF, PowerPoint)

Endorsement by Gita Gopinath, Greg Mankiw, Raghu Rajan, Ken Rogoff, ...

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