Category Archives: Financial Crises

Symposium on Low Interest Rates

From the Mercatus center. The contributions are not coordinated in any way. We wrote essays about causes, effects, predictions, …whatever we felt like, on the general subject of the implications of low interest rates and the potential for them to … Continue reading

Posted in government debt crisis, PSST and Macro | 6 Comments

Ben Bernanke takes on Sebastian Mallaby

Bernanke writes, Mallaby’s argument that Greenspan should have known that a tighter monetary policy was appropriate in 2004-2005 (if that was in fact the case!) strains credulity. In 2003 the Fed was navigating a deflation scare and a jobless recovery … Continue reading

Posted in books and book reviews, Financial Crisis of 2008, Tyler Cowen is my Favorite Blogger | 2 Comments

If David Cutler were an Entrepreneur

He would buy a hospital. Let me explain. The IGM forum polled economists to see if they agreed with this statement: Long run fiscal sustainability in the US will require some combination of cuts in currently promised Medicare, Medicaid and … Continue reading

Posted in business economics, Economics of Health Care, government debt crisis | 3 Comments

Doug Elmendorf on the Debt

He writes, Together with Brookings Senior Fellow Louise Sheiner, I have analyzed alternative explanations for low Treasury rates and the implications of each for budget policy (Elmendorf and Sheiner, 2016). We found that most explanations imply that the country should … Continue reading

Posted in government debt crisis, Tyler Cowen is my Favorite Blogger | 11 Comments

Another Idiosyncratic Comment

Kevin Erdmannn comments, It seems like you’re making the very mistake Smith is warning about. I don’t think historians looking at the newspapers of 2005 would be struck with the high level of trust we had in financial intermediaries. We … Continue reading

Posted in Financial Crisis of 2008 | 3 Comments

Common-law Banks

A commenter asks, What do you think of the limited purpose banking proposal advanced by Laurence Kotlikoff and others? Link to PDF: https://www.aeaweb.org/conference/2012/retrieve.php?pdfid=568 I am skeptical of the ability of government to design banks. It is one thing to write … Continue reading

Posted in Financial Crisis of 2008 | 6 Comments

What Was Glass-Steagall?

I don’t think that Robert Reich actually knows. Some argue Glass-Steagall wouldn’t have prevented the 2008 crisis because the real culprits were non-banks like Lehman Brothers and Bear Stearns. But that’s baloney. These non-banks got their funding from the big … Continue reading

Posted in Financial Crisis of 2008, Tyler Cowen is my Favorite Blogger | 7 Comments

Larry Ball Gets Pushback

From Stephen G. Cecchetti and Kermit L. Schoenholtz: There is certainly room for debate, but we see the question of whether Lehman’s net worth was negligible or sharply negative as ancillary to the real issue. In important ways, lending to … Continue reading

Posted in Financial Crisis of 2008 | 7 Comments

Paulson, Bernanke, and Lehman, continued

James B. Stewart writes, One of the more intriguing questions Professor Ball tackles is why Mr. Paulson, rather than Mr. Bernanke, appears to have been the primary decision maker, when sole authority to lend to an institution in distress rests … Continue reading

Posted in Financial Crisis of 2008, Mark Thoma is Indispensable | 11 Comments

Jason Collins reviews Jonathan Last

Collins writes, So, if government can’t make people have children they don’t want and can’t simply ship them in, Last asks if they could help people get the children they do want. As children go on to be taxpayers, government … Continue reading

Posted in books and book reviews, government debt crisis, Jason Collins is Indispensable | 21 Comments