Stein Berre (New York Fed) & Paul Kosmetatos (University of Edinburgh) talk to Carmen Hofmann (eabh) about the first global credit crisis (1772/73). Which role did innovative financial products play? How did financial contagion propagate the initial shock and in which way did authorities intervene to stabilise markets?

Interestingly enough, the events 200 years ago resulted in a larger role of central banks within the architecture of finance. These state institutions then used certain stabilisation techniques that are still in place today. What is it that defines their success?