Speed Limits for Financial Markets? Not So Fast

2019-03-25T15:06:55-04:00June 1, 2017|

By IMFBlog

June 1, 2017

Traders on the floor of the New York Stock Exchange (photo: Andrew Kelly/Reuters/Newscom)

On the afternoon of May 6, 2010, a financial tsunami hit Wall Street. Stunned traders watched as graphs on their computer screens traced the vertiginous 998-point plunge in the Dow Jones Industrial Average, which erased $1 trillion in market value in 36 minutes.

There was little in the way of fundamental […]

Observations on the Evolution of Economic Policies

2017-04-15T14:27:35-04:00March 25, 2011|

It was a privilege to participate in the IMF conference devoted to rethinking policy frameworks in the wake of the crisis. Highly encouraging was the openness of the discussion, the range of views, the willingness to question orthodoxy, and the posture of humility. One gets the impression that the crisis triggered the response that it should. We have embarked on a path of rethinking conceptual frameworks and policy choices in a way that will contribute to the stability of the system. Returning to old patterns, while waiting for different or more complete models to be developed and tested, would be a risky mistake. Here, I offer five thoughts stimulated by the spirit of the conference, as a contribution to the broader discussion that we all hope might stimulate further research and policy analysis. And, ultimately, progress.
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