An interactive primer on the
macroeconomics of financial crises
WELCOME

This interactive learning package provides a macroeconomic perspective of financial crises. It demonstrates how financial crises may grow into major national or global economic downturns, and it asks students to explore what policy makers can do to soften the impact of financial crises on national income and employment. In this context, it takes a close look at the conditions under which monetary policy or fiscal policy (so-called stimulus packages) may or may not be effective.

The package consists of several modules that ask
 What is a financial crisis?
 What are outstanding examples of financial and economic crises in recent history?
 What are the macroeconomic repercussions of and the policy options during financial crises?

Please use the above buttons to navigate through the main modules of this package. You may do so either in the proposed sequence, or by jumping directly to the module you are most interested in. Navigation to sub-pages within modules is placed directly into the text frames.


Prerequisites: Users should be familar with the key concepts from undergraduate macroeconomics, including a basic understanding of the IS-LM and Mundell-Fleming models taught in intermediate macroeconomics courses and covered in accompanying textbooks.

Recommendation: For your convenience, depending on the size and format of your screen, you may want to select full-screen mode.

Disclaimer: This package does not explain what triggers financial crises, how bubbles can be prevented, or what regulations the financial industry needs. Its focus is on how financial crises, that started for whatever reason, affect the macroeconomy, spread accross borders, and what policy makers can do to fend off the worst.

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Authors: Manfred Gärtner, Björn Griesbach, Florian Jung and Andreas Kleiner. Institute of Economics, University of St. Gallen, Switzerland, 2010.