Chapter 1 The Global Financial Crisis
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The Global Financial Crisis (GFC) of 2007–2009 was the most severe crisis induced by a financial shock since the Great Depression. Although the more recent crisis caused by the COVID-19 pandemic has had even greater economic consequences, the GFC remains paradigmatic of the effects which systemic financial crises may provoke. In the United States, millions of families lost their homes and their wealth as a consequence of the GFC. Around the world, financial markets suffered huge losses, the credit market crashes, and the world economy experienced the worst recession in the post-war period. The magnitude of the losses was so high that economists to define this episode as the “Great Financial Crisis”. For these reasons, we decided to devote the first chapter of the book to it. More precisely, paragraph 1.1 describes the chronology of the crisis in its peculiar features. Paragraph 1.2 explains the macro causes of the crisis, while paragraph 1.3 focuses on the micro ones. Paragraph 1.4 summarizes and illustrate the policy implications.

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