Seminar paper from the year 2011 in the subject Economics - Macro-economics, general, grade: A, Utrecht University, language: English, abstract: When the United States housing bubble collapsed in 2007 and triggered a global financial

crisis this also did not leave one of the economically strongest country in Europe unaffected.

Amongst other, the insolvency of Lehman Brothers (and others) led to a liquidity shortage in

German major banks like the Hypo Real Estate (Müller) and the BAA-AAA-spread increased. In

the following, the performance of Germany during the global crisis from 2006 to 2010 will be

examined in the IS/LM framework and show how the financial and monetary sector reacted.