Read the chapter and answer the reading questions
Krugman (2009), The Return of Depression Economics and the Crisis of 2008, New York, NY: W. W. Norton & Company, Inc.
Question will need the reading of Chapter 3, 9 and 11
1. Explain some of the evidence that Japanese asset values were overpriced.
2. What is a moral hazard? How does it apply to the savings and loan example looked at in class?
3. What is a growth recession?
4. What happened to the Japanese economy?
5. What is a liquidity trap?
6. What did Japan try to do to get out of its growth recession?
7. What happened to the US housing market?
8. What happened in the shadow banking system?
9. What troubles has the Fed encountered? Why?