September 11, 2018
The tenth anniversary of the collapse of US investment bank Lehman Brothers and the global crisis that followed is a sober reminder of what has changed, and what has not, in the world of economics and finance. […]
September 7, 2018
As your list of things to do gets longer and the days grow shorter, you know summer is fading, just like your tan.
To help you quickly catch up on the news and policy debates of the summer—if you live in the Northern Hemisphere—our editors have put together a list of our top reads on economics and finance. […]
Guest post by: Joseph E. Stiglitz
Columbia University, New York, and co-host of the Conference on Rethinking Macro Policy II: First Steps and Early Lessons
In analyzing the most recent financial crisis, we can benefit somewhat from the misfortune of recent decades. The approximately 100 crises that have occurred during the last 30 years—as liberalization policies became dominant—have given us a wealth of experience and mountains of data. If we look over a 150 year period, we have an even richer data set.
With a century and half of clear, detailed information on crisis after crisis, the burning question is not How did this happen? but How did we ignore that long history, and think that we had solved the problems with the business cycle? Believing that we had made big economic fluctuations a thing of the past took a remarkable amount of hubris.
Guest post by George A. Akerlof
University of California, Berkeley
Senior Resident Scholar at the IMF, and co-host of the Conference on Rethinking Macro Policy II: First Steps and Early Lessons
I learned a lot from the conference , and I’m very thankful to all the speakers. Do I have an image of the whole thing? I don’t know whether my image is going to help anybody at all, but my view is that it’s as if a cat has climbed a huge tree. It’s up there, and oh my God, we have this cat up there. The cat, of course, is this huge crisis.
And everybody at the conference has been commenting about what we should do about this stupid cat and how do we get it down and what do we do. What I find so wonderful about this conference is all the speakers have their own respective image of the cat, and nobody has the same opinion. But then, occasionally, those opinions mesh. That’s my image of what we have been […]