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You will need to write a short literature review on the topic “Financial frictions, crises and the business cycle”. This topic is just an indication and doesn’t have to be the title of the essay. You are free to choose a narrower topic within the given field. The papers should come from the top macroeconomics journals making substantial contribution to the field. Include a minimum of 5 articles (5-6 pages). Report should include overview of papers, discussion on how their fit into broader literature and some suggestions for future research. The papers that you can potentially give an overview to: Kyotaki, N., & Moore, J. (1997). Credit cycles. Journal of PoliticalEconomy, 105(2), 211-248 Diamond, D. W., & Dybvig, P. H. (1983). Bank runs, deposit insurance, andliquidity. Journal of Political Economy, 91(3), 401-419. Morris, S., & Shin, H. S. (2000). Rethinking multiple equilibria inmacroeconomic modeling. NBER Macroeconomics Annual, 15, 139-1 Romer. D. (2018) ADVANCED MACROECONOMICS, McGraw-HillEconomics, 5th Edition, APRIL 2018, Boissay, F., Collard, F., & Smets, F. (2016). Booms and banking crises.Journal of Political Economy, 124(2), 489-538


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