Moritz Schularick: Instability in Financial Markets 4/5

The video explores 140 years of economic history, focusing on the role of debt and credit in financial crises and business cycles. It discusses a comprehensive data set covering 14 countries and highlights the decoupling of credit and money post-World War II. The video examines how credit growth can predict financial crises and analyzes policy responses over time. It also delves into the impact of credit on the business cycle, emphasizing the severity of recessions following credit-intensive booms. Finally, it offers a skeptical view on traditional remedies for financial crises.

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