From the following list pick one or two crises to address to answer the question How do financial Bubbles and crises effect aggregate economic activity? (4000 words)
Crises that can be discussed:
• Dutch Tulipmania of the 1630s
• Mississippi bubble and the south sae bubble of the 1720s
• The long depression of 1870se great depression
• Japaneses asset price bubble of the 1980s and secular stagnation
• Dot-com bubble of the late 1990s
• The 2008 Financial Crisis
Essay structure:
Choose and describe the events of a financial crisis
Explain the interpretation of the crisis according to the approach of a school of thought and highlight the links between the financial sphere and the aggregate economic activity.