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14.454 | Spring 2026 | Graduate

# Economic Crises

#### Course Description

This half-semester, 13-week course provides a fast-paced description of the canonical macroeconomic models of ﬁnancial frictions and crises. We will cover various topics, including (i) ﬁnancial ampliﬁcation mechanisms; (ii) ﬁnancial intermediation and credit crunches; (iii) coordination failures and bank runs; (iv) …
This half-semester, 13-week course provides a fast-paced description of the canonical macroeconomic models of ﬁnancial frictions and crises. We will cover various topics, including (i) ﬁnancial ampliﬁcation mechanisms; (ii) ﬁnancial intermediation and credit crunches; (iii) coordination failures and bank runs; (iv) speculative bubbles and credit booms; (v) liquidity traps and deleveraging; and (vi) sudden stops and ﬁnancial contagion.

## Course Info

### Instructor

- Prof. Ricardo Caballero

### Departments

- Economics

### Topics

- Social Science
  - Economics
    - Financial Economics
    - Macroeconomics

### Learning Resource Types

notes Lecture Notes
assignment_turned_in Problem Set Solutions
assignment Problem Sets
auto_stories Readings
A person holds cut-up credit cards in their hands. Credit crunch is covered in lecture 3. (Image by Fotero on Flickr. License: CC BY-NC).

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