1. Figure 11.1 Stylized balance sheets of firms and banks

2. Figure 11.2 Financial crisis in an asymmetric information framework

3. Figure 11.3 Current account balance of selected EU countries, 2006-2012 Source: van Marrewijk (2012), updated for 2012 with estimates from The Economist, 8 September 2012

4. Figure 11.4 Global imbalances; current account balance (US $ bn), 1970-2011 Source: based on World Development Indicators online data; EU = European Union

5. Figure 11.5 Foreign-held US government debt (US $ billion), 2011 Source: van Marrewijk (2012); oil exp nat = oil exporting nations

6. Figure 11.6 Perverse savings and the backward-bending savings curve

7. Figure 11.7 Currency crises and ongoing banking crises, 1970-2012 Source: author calculations based on data from Laeven and Valencia (2012)

8. Figure 11.8 The unfolding of a financial crisis

9. Figure 11.9 The vicious circle of financial crises Source: Krugman (2000).