Old questions, new answers: The changing narrative of the great recession
The debate on the causes of the 2007-2009 financial crisis is far from over
On 15 September 2008, Lehman Brothers Holdings Inc., arguably the biggest victim of the US subprime-mortgage crisis, filed for bankruptcy. This seminal event greatly intensified the ongoing economic crisis in the US and led to the erosion of a record $10 trillion in market capitalization from the global equity markets. With its ninth anniversary round the corner, a new working paper at National Bureau of Economic Research (NBER), a leading economic research organization based in the US, along with independent research work by scholars at Massachusetts Institute of Technology, is giving rise to a competing theory that has challenged the broadly concordant reasons for the Great Recession.