Olivier Blanchard: Monetary Policy Will Never Be the Same

By Olivier Blanchard—Chief Economist, IMF: Two weeks ago, the IMF organized a major research conference, in honor of Stanley Fischer, on lessons from the crisis. Here is my take.   I shall focus on what I see as the lessons for monetary policy, but before I do this, let me mention two other important conclusions. One, having your […]

The Return of the Emerging Market Crisis

To paraphrase writer Robert Louis Stevenson, financial markets have “a grand memory for forgetting”. Multiple Latin debt crises and the 1997/1998 Asian emerging market crisis have been forgotten. Now, the risk of an emerging market crisis is very real. Real BRICs… Investors have been romancing emerging markets, exemplified by the dalliance with the BRIC economies […]

Non-Lessons of the Financial Crisis

As the fifth anniversary of the Lehman bankruptcy approaches, the Internet is filling up with reflections on the financial crisis and the ensuing years. My main feeling, as expressed in my latest Atlantic column, is amazement at how little we seem to have learned. Looking back, the period in late 2008 and early 2009, when it was obvious […]

Happy Anniversary Lehman Brothers, And What We Haven’t Learned About Wall Street Over the Past Five Years

While attention is focused on Syria, the gambling addiction of Wall Street’s biggest banks is more dangerous than ever. Five years ago this September, Lehman Brothers went bankrupt, and the Street hurtled toward the worst financial crisis in eighty years. Yet the biggest Wall Street banks are far larger now than they were then. And […]

Credit or Demand Constraints? Why Investment Declined in the 2008/09 Recession

To overcome the recession following the financial crisis of 2007-09, US authorities have pursued ambitious policy measures aimed at maintaining the liquidity and solvency of the banking sector to ensure a steady flow of credit from financial markets to businesses. Despite these policy efforts business investment declined enormously in the aftermath of the financial meltdown […]

Weekend Reading: The Human Side of the Housing Crash

We’ve all read endlessly about the effects of the real estate bubble on the banking system, GDP, monetary policy, and all the rest. If you have had enough financial analysis, if you are ready to read something about the human side of the housing crash, try reading Tana French’s latest novel, Broken Harbor. The story, […]

William Black in Davos: Now We Know Better

Below, find a video of William Black’s speech at the 2013 Public Eye Awards in Davos, Switzerland. Quoting George Ackerlof and Paul Romer, Black references an early warning against deregulation, and 1993 followup that “many economists still seem not to understand that a combination of financial circumstances in the 1980s made it easy to loot […]