Category Archives: Financial Crisis

Debate Over the Very Principles of Economics

Today is the launch of the online version of my Economics 1 course (and namesake of this Blog and my Twitter handle) on the Principles of Economics for summer 2017. This year is also the tenth anniversary of the start … Continue reading

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Reserve Balances and the Fed’s Balance Sheet in the Future

An important part of the Fed’s normalization policy is to reduce its holdings of securities and thereby reserve balances—deposits of banks at the Fed—used to finance these holdings. As I argued when quantitative easing began in 2009, this reduction should … Continue reading

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It’s Time to Pass the Financial Institutions Bankruptcy Act

Today the House Judiciary Subcommittee lead by Tom Marino held a hearing on the Financial Institution Bankruptcy Act (FIBA) which lays out in clear legislative language the “Chapter 14 type” reform proposals that Stanford’s Hoover Resolution Project have been working … Continue reading

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A World Cup in the Battle of Ideas

Markus Brunnermeier, Harold James and Jean-Pierre Landau have just published a fascinating book, The Euro and the Battle of Ideas, in which they bring together their respective skills in economic theory, economic history and economic policy to bear on one … Continue reading

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Should the Previous Framework for Monetary Policy Be Fundamentally Reconsidered?

“Did the crisis reveal that the previous consensus framework for monetary policy was inadequate and should be fundamentally reconsidered?”  “Did economic relationships fundamentally change after the crisis and if so how?” These important questions set the theme for an excellent … Continue reading

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Novel Research on Elections, Policymaking, Economic Uncertainty

The Becker Friedman Institute of the University of Chicago and the Hoover Institution of Stanford University teamed up yesterday to put on a Conference on Elections, Policymaking, and Economic Uncertainty. The conference was held at the Hoover Institution Offices in … Continue reading

Posted in Financial Crisis, Fiscal Policy and Reforms, Regulatory Policy, Stimulus Impact | Leave a comment

An Economic and Security Policy Blueprint for America

A timely new policy book, Blueprint for America, edited by George P. Shultz, is being released today online for the first time. The release coincides with the start of platform writing by Republicans this week and Democrats the following week, … Continue reading

Posted in Budget & Debt, Financial Crisis, Fiscal Policy and Reforms, International Economics, Monetary Policy, Regulatory Policy | Leave a comment

Now is the Time for “Chapter 14” Bankruptcy Reform

Yesterday a “Chapter 14” bankruptcy reform passed the House of Representatives as Title XI (The Financial Institution Bankruptcy Act) of the Appropriations Bill on Financial Services and General Government.  This is a very promising development. The reform would largely end … Continue reading

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Other Economic Lessons the US Can Learn from Greece

Last week the Senate Foreign Relations Subcommittee on Europe and Regional Security Cooperation held a hearing for which I was asked to address the lessons that the United States can learn from the Greek financial crisis.  One obvious lesson is … Continue reading

Posted in Financial Crisis, Regulatory Policy, Slow Recovery | Leave a comment

Make Failure Feasible and End “Too Big To Fail”

Today the Senate held a hearing on a bankruptcy reform proposal which would address the problem of too-big-to-fail head on. The reform applies to large financial firms and makes failure feasible under clear rules without systemic spillovers thereby greatly reducing … Continue reading

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