December 2, 2008
The Global Crisis, class #4
Relevant links, including background material and tracking of all relevant developments available through http://BaselineScenario.com.
Update: Webcast for today’s class (RealMedia).
Summary of class content and structure:
1. Update on the global crisis
- The latest news from around the world
- What may be next? Looking to Europe…
2. The case for and against bailing out Citigroup
- Comparison with General Motors
- Assessment of the bailout terms
- Who was to blame? And for what exactly?
3. The situation in Europe
- Signs of pressure: financial sector and real economy
- Policy responses: European Central Bank interest rate cuts, a more unified fiscal stimulus?
- Specific country issues: Italy, UK, Spain and others
4. Prospects for global financial system reform.
a. Recap on likely strategy of President-Elect Obama’s team with regard to fiscal and monetary policy. What is their likely global strategy, with or without the IMF?
b. How does this fit with what the rest of the G7 or emerging markets or any other influential players want?
c. Can we see a full overhaul of the global system coming soon? If not, why not?
Final class is on Tuesday, December 9. Discussion in the December 9 class will be off-the-record; it will not be broadcast or recorded.