Working Paper No. 593 May 07, 2010

A Contribution to the Theory of Financial Fragility and Crisis

by Amit Bhaduri

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The Levy Economics Institute of Bard College, founded in 1986 through the generous support of Bard College trustee Leon Levy, is a nonprofit, nonpartisan, public policy research organization. The Levy Institute is independent of any political or other affiliation, and encourages diversity of opinion in the examination of economic policy issues while striving to transform ideological arguments into informed debate.