This paper models the global financial crisis as a combination of shocks to global housing markets and sharp increases in risk premia of firms, households and international investors in a global economic model. The model has six sectors of production and trade in 15 major economies and regions....

The dramatic collapse in world trade in 2009 is, this report shows, mainly due to: the drop in demand for highly traded products; the drying up of trade finance; and the vertically integrated nature of global supply chains. Contrary to expectations, protectionist measures were relatively muted and...

Chapter 1. Introduction -- Chapter 2. Evidence of six crises -- Chapter 3. Globalization, national economies, and global crises -- Chapter 4. Conceptual issues — Depressions, recessions, crisis cycles, business cycles -- Chapter 5. A world economy -- Chapter 6. Why do crises occur? Causal...