Credit Booms Gone Bust: Monetary Policy, Leverage Cycles, and Financial Crises, 1870–2008

In this article published in the American Economic Review in 2012,Moritz Schularick and Alan M. Taylor take a look at the brief history of macroeconomics, the subject of money and banking has witnessed wide fluctuations in both its internal consensus and external influence. The crisis of 2008–2009 has reignited a new interest in understanding money and credit fluctuations in the macroeconomy and the crucial roles they could play in the amplification, propagation, and generation of shocks both in normal times and, even more so, in times of financial distress.