Getting the Financial Crisis Narrative Right
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/By now, everyone has their favorite narrative to explain the financial crisis and the effectiveness of the policy response to it. It... Read More
Bernanke Discovers the Information Matrix
In his ongoing analysis of the earthquake that struck the global financial system’s opacity fault line in 2008, Ben Bernanke discovered the... Read More
After a Decade, the Queen Deserves an Honest Answer
It was almost a decade ago when the Queen of England asked at the London School of Economics how come the Economics... Read More
Noble Prize Winning Economist’s False Narrative About Financial Markets
According to David Warsh, a former Boston Globe columnist and now blogger, in August 2008 Bengt Holmström, a Nobel prize winning MIT... Read More
Stress Tests Undermine Capitalism
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The first sign the Obama Administration was seriously uninterested in fixing the US financial system occurred when then US Treasury Secretary Tim... Read More
Economists Demonstrate Difficulty in Escaping Old Ideas
In his General Theory book, Keynes noted: The difficulty lies, not in the new ideas, but in escaping from the old ones.... Read More
The Information Matrix and the 2018 Nobel Symposium on Money and Banking
The Information Matrix was the uninvited guest that everyone wished attended the 2018 Nobel Symposium on Money and Banking. Thanks to John... Read More
Economics: The Gap between Brilliant and Useful
Nicholas Gruen, CEO of Lateral Economics, highlighted a major problem with Economics today while talking about Nobel prize winning Economist Paul Krugman: his... Read More
The Financial Crisis Response and the Death of Truth
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The 2008 response to the acute phase of the Great Financial Crisis contributed directly to the death of truth. Michiko Kakutani asked... Read More
Credentials versus Expertise
Since 2008 when the Queen of England asked Economists (broadly defined to include finance professors) why they had not seen the financial... Read More
A Reassuring Lie
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When the Queen of England asked Economists (including finance professors too) in 2008 why they had failed to see the financial crisis... Read More
None are So Blind as Those Whose Finances Depends on Their Not Seeing
In 2009, I first used the term Opacity Protection Team to reference all the financial market participants who objected to the return... Read More
With Such Friends [as Academics], Who Needs Lobbyists?
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The title for this post comes from Stanford business school professor Anat Admati’s “It Takes a Village to Maintain a Dangerous Financial... Read More
Bernanke and the Search for a Narrative Continues
I can truly appreciate how uncomfortable it must be for macroeconomists not to have either an understanding of how the global financial... Read More
Yale Professor: Basically You Don’t Understand the Crisis
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Yale professor Gary Gorton is the gift that keeps on giving. His latest gift was to inform a Wall Street journal reporter... Read More