Chronicle of an unexpected crisis

Abstract

What began as a cooling of the subprime mortgage credit market in the United States during 2007 unexpectedly transformed towards the end of 2008 into the worst global financial and economic crisis since the Crisis of 1930. Not only has the magnitude and the global scope of the crisis have caught the attention of analysts, but also that it has originated in developed nations, where an environment of institutions and macroeconomic policies predominates that is usually considered correct. In this context, the eagerness to try to understand the origin of the crisis, how to avoid new episodes of this type and what reforms are necessary in the financial architecture to prevent future crises is enhanced.

JEL classification: E52 ; E60 ; G01