Lagarde’s experience as a policy-maker and clear communicator may prove very successful.
As an introduction to the topics that will be dealt with in the AIER Graduate Colloquium, over the next few weeks Joakim Book will summarize the core readings that our students are currently reading to prepare for a good discussion at the event.
It happened sometime after the crisis of 1847.
Before New York acquired its status as the financial center of the world, the honor of that title was reserved for London and, before then, Amsterdam for roughly a century each.
Financial markets, including markets for complex instruments that may just look like speculative casino bets, allow important real transactions to occur. And in a brilliantly decentralized way, they bring into harmony people whose information, values, goals, and risk aversion differ.
To remain consistent, opponents of so-called fractional-reserve banking have to denounce overbooking practices among airlines as well as the entire business of insurance.
Why wouldn’t we want safe and stable banks? Like almost everything else in economics, benefits in one area comes with real costs in others.
Seismologists can’t predict earthquakes. Economists can predict financial meltdowns? Please.