Relearning Recessions

The video discusses the significant role of banking sector distress in business cycles, highlighting how financial crises can trigger recessions. It explores historical financial crises, emphasizing the challenges in understanding them due to narrative-based chronologies. The video examines credit booms as a major cause of banking crises and introduces the concept of quiet banking crises, where excessive lending leads to economic issues without overt panics. It also discusses the implications of too big to fail banks and the interconnectedness of the banking sector with financial markets, affecting asset prices and economic stability.

What role does distress in the banking sector play in business cycles?

What are the key features of credit booms and their relation to banking crises?

How do historical financial crises differ from one another according to recent research?

In what ways can government backstopping of banks affect the occurrence of banking crises?

What lessons can be learned from the Japanese financial crisis in the early 90s?

How does the concept of 'too big to fail' relate to moral hazard in banking?

What is the significance of the connection between the banking sector and financial markets?