The three papers discussed and their authors are as follows: (1) "Financial Regulation in a System Context," by Stephen Morris and Hyun Song Shin, professors of economics at Princeton University; (2) "Beyond Leveraged Losses: The Balance Sheet Effects of the Home Price Downturn," by Jan Hatzius, chief U.S. economist at Goldman Sachs; and (3) "The Central Role of House Prices in the Financial Crisis: How Will the Market Clear?"
With the euro area accounting for just under one sixth of the global economy, this in turn acted as a significant drag on global growth. The second factor is that, other things equal, history suggests that recoveries from financial crises typically take longer than those from other types of business cycle events.