The "Money View" Lens

The transcript discusses the 2008-2009 financial crisis, highlighting the macroeconomic profession's failure to predict it. The speaker shares personal experiences from 2007, noting early signs of the crisis through financial indicators. They used the unfolding crisis as a teaching tool, predicting its impact in real-time. The focus is on analyzing short-term money spreads to understand market stresses, using a 'money view' lens.

What was the general perception of the macroeconomics profession regarding the financial crisis of 2007-2008?

• They failed to foresee or fully understand it.

• They accurately predicted the crisis.

• They exaggerated the potential impact.

• They had no interest in the crisis.

What event in the summer of 2007 signaled the beginning of the crisis for the speaker?

• The decline in housing prices.

• The increase in stock market prices.

• The collapse of Bear Stearns hedge funds.

• The rise of interest rates.

What did the speaker notice about interest rates in September 2007?

• They were stable and predictable.

• They were decreasing steadily.

• They were fluctuating wildly.

• They were irrelevant to the crisis.

What did the speaker predict about the shadow banking system during their class?

• It was irrelevant to the financial system.

• It was already well understood.

• It would face significant challenges.

• It would pass the stress test easily.

How did the speaker interpret the short-term money spreads?

• As an indicator of market stress.

• As irrelevant to the financial crisis.

• As a historical anomaly.

• As a sign of economic stability.