NBER WORKING PAPER SERIESDECIPHERING THE LIQUIDITY AND CREDIT CRUNCH 2007-08Markus K. BrunnermeierWorking Paper 14612http://www.nber.org/papers/w14612NATIONAL BUREAU OF ECONOMIC RESEARCH1050 Massachusetts AvenueCambridge, MA 02138December 2008
My views were shaped by conversations with Viral Acharya, Tobias Adrian, Franklin Allen, Patrick
Bolton, Michael Brennan, Smita Brunnermeier, Sylvain Champonnois, Ing-Haw Cheng, John Cochrane,
Doug Diamond, Jacob Goldfield, Joel Hasbrouck, John Kambhu, Arvind Krishnamurthy, Augustin
Landier, David Lando, Jamie McAndrews, Konstantin Milbradt, Stefan Nagel, Filippos Papakonstantinou,
Lasse Pedersen, Lucas van Praag, Raghu Rajan, Ricardo Reis, José Scheinkman, Til Schuermann,
Hyun Shin, James Vickery, Glen Weyl, Wei Xiong, and Moto Yogo. Special thanks go to the editors,James Hines, Andrei Shleifer, Jeremy Stein, and Timothy Taylor, and also to Martin Oehmke. Rachel
Goodwin, Martin Schmalz, and Hao Wu provided excellent research assistance. I am grateful for financial
support from the Alfred P. Sloan Foundation. The views expressed herein are those of the author(s)
and do not necessarily reflect the views of the National Bureau of Economic Research.
© 2008 by Markus K. Brunnermeier. All rights reserved. Short sections of text, not to exceed two
paragraphs, may be quoted without explicit permission provided that full credit, including © notice,
is given to the source.