PDF《Liquidity烬nd炉he燰eil爋f焖inance? ?》

s?subconscious.??Section?V?will?discuss?three?puzzles?that?empirical?research?on?

1 ?To?be?fair,?the?Fed?and?other?G7?central?banks?displayed?great?creativity?in?adopting?effective?heterodox?policies.?? My?guess?is?that?this?reflects?the?high?quality?and?admirable?courage?of?their?economists,?despite?these?banks?being? institutionally?and?technically?unfit?to?face?the?new?challenges.? 2? ? booms?and?busts?has?brought?to?light:?(1)?that?credit?booms?precede?financial?crises,?(2)?that?capital? flows?get?exacerbated?in?the?run\up?of?a?balance\of\payments?crisis,?and?(3)?that?gross?capital?inflows? and?outflows?(in?the?Balance?of?Payments)?are?pro\cyclical.??The?answer?to?these?........