The financial crisis had brought the banks to the center of recent public debates. Banks, large and small, were hit hard by the collapse of the housing bubble and the subsequent disruptions in the credit market. Many are worried that a contraction in lending due to the weaknesses of bank balance sheets had a large negative impact on the real economy.
These observations and concerns motiv... Read More
Jeffrey Miron provides a libertarian perspective on the stimulus, regulation, and the state of the economy in a lively interview with Harvard Economics Review staff member Lane Erickson. He proposes putting a lid on entitlement programs and a consumption-based tax that includes a “social safety net.”
1. You were one of a few hundred economists to sign a statement o... Read More
Economists Foote, Gerardi, and Willen, all of the Federal Reserve System, push back against assertions that mortgage principal reduction will help underwater homeowners stay in their homes. They prefer instead forbearance programs, in which borrowers are given substantial but temporary relief, rather than the moderate and permanent help of principal reduction.
The Great Recessio... Read More
Richard Cooper maintains that, in order to cover the quantitatively significant arbitrage around the regulations that have occurred since the last significant revision, periodic financial crises are necessary to adapt and extend financial regulation. The challenge is to recognize and act on financial crises early enough to forestall serious recession.
The financial crisis of 200... Read More