Financial instability

Vulnerability arising from leverage, expectations and financial interdependence.

Key question

How does money shape an economy?

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Find an example, an application and a limit. Explain the concept without using its name, then compare your explanation with a primary source.

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Claims to examine

  • Financial fragility and aggregate demand are relevant to explanations of macroeconomic instability.

    Editorial claim · contestedExamine the source →

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