Search Results for: larry summers new model

Larry Summers’ New Model: Details, Contradictions, And Odd Assumptions

Larry Summers had “lunch with the FT” (p.3 in the Life and Arts section today) – although unfortunately the paper does not report when this happened; a week or two makes quite a difference these days. Putting this next to … Continue reading

Larry Summers’ New Model

Larry Summers spoke on Friday afternoon at the InterAmerican Development Bank in Washington DC.  As he was addressing a group with  much experience living through and dealing professionally as economists with major crises, he spoke the “language of economics” (as he called … Continue reading

Larry Summers, Economic Recovery, And Ben Bernanke

In a memo to Congress on Tuesday, Larry Summers – the head of the White House National Economic Council – laid out his view of where we are and what is likely to happen next in our economic recovery. His … Continue reading

After Peak Finance: Larry Summers’ Bubble

There are three kinds of “bubbles” –  a term often used loosely when asset prices rise a great deal and then fall sharply, without an obvious corresponding shift in “fundamentals“. A short-run bubble.  Think about 17th century Dutch Tulip Mania: spectacular, probably … Continue reading

Why Do Senators Corker And Dodd Really Think We Need Big Banks?

 By Simon Johnson On Friday, Senator Bob Corker (R, TN) took to the Senate floor to rebut critics of big banks.  His language was not entirely senatorial: “I hope we’ll all come to our senses”, while listing the reasons we … Continue reading

Tonight On Bill Moyers Journal, This Morning On NPR, And Louis Brandeis

On PBS this evening (first airs at 9pm eastern; on the web from about 10pm), Bill Moyers, Rep. Marcy Kaptur, and I discuss where we stand – and what we’ve learned – a year after the US financial system almost … Continue reading

Krugman on Economics

This weekend’s New York Times Magazine has the 7,000-word article about the state of macroeconomics that Paul Krugman has been hinting at for some time now. It’s a well-written, non-technical overview of the landscape and the position Krugman has been … Continue reading

Firefighter Arson And Our Macroeconomic Policymakers

Firefighter arson is a serious problem.  The U.S. Fire Administration, part of Homeland Security, concluded in 2003, “A very small percentage of otherwise trustworthy firefighters cause the very flames they are dispatched to put out” (p.1). Illustrative and shocking anecdotes … Continue reading

How To Blow A Bubble

Matt Taibbi has rightly directed our attention towards the talent, organization, and power that together produce damaging (for us) yet profitable (for a few) bubbles.  Most of Taibbi’s best points are about market microstructure – not the technological variety usually studied in mainstream … Continue reading

The Case for Capital Controls, Again

If you are in charge of monetary policy in an up-and-coming Asian economy (say India, China, or Korea), you have a problem. The world’s financial markets have decided that Asia is rebounding more quickly than most other parts of the … Continue reading

What Next For The Global Crisis?

Slides for speech to World Bank conference (Lessons from East Asia and the Global Financial Crisis), Tuesday in Seoul (1pm local time), are attached.  This post summarizes my main points. There are two views of the global financial crisis and … Continue reading

Efficient Markets and Innovation

Our little Internet debate about reverse convertibles (my contribution here) prompted this post by Mike at Rortybomb. To simplify a little, some commentators defended reverse convertibles by saying, “it’s basically the same as writing a put option” – or, looking … Continue reading

President Obama’s Regulatory Reforms Announcement: A Viewer’s Guide

At 12:30pm on Wednesday at the White House (someone: please update the Treasury’s schedule of events), President Obama is due to “unveil” his proposals for reforming the functioning of our financial system.  The content has already been foreshadowed in some detail, … Continue reading

Consumer Protection When All Else Fails (Written Testimony)

I took three points away from yesterday’s hearing in the House of Representatives. We need layers of protection against financial excess.  Think about the financial system as a nuclear power plant, in which you need independent, redundant back-up systems – so … Continue reading

Antitrust For Banks? Ask Carl Shapiro

The Department of Justice seems to thinking, at least in principle, about potential antitrust action in and around banking.  Assistant Attorney General Christine Varney spoke about this yesterday, but her exact wording is open to interpretation, “”I have to ask … Continue reading