Category Archives: Financial Crisis

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

Posted in Financial Crisis, Regulatory Policy

A Deal and a Step to International Monetary Reform

I make the case in this Wall Street Journal piece and in more detail in Congressional testimony that there’s an opportunity for a deal between the Congress and the Administration on international monetary reform.  The case starts with perhaps the … Continue reading

Posted in Financial Crisis, International Economics

Surprising Findings at the Macro Handbook Conferences

In order to further progress on the new Handbook of Macroeconomics, which will be published next year, Harald Uhlig and I, the co-editors of the Handbook, hosted two conferences at Stanford and Chicago in April. Harald and I attended both … Continue reading

Posted in Budget & Debt, Financial Crisis, Fiscal Policy and Reforms, International Economics

Across the Great Divide: New Perspectives on the Financial Crisis

A year ago today, the Hoover Institution and the Brookings Institution held an unusual joint conference on the financial crisis, where twenty-four economists and legal scholars reexamined the crisis, its effect on the US economy, and possible policy reforms. The … Continue reading

Posted in Financial Crisis, Slow Recovery

Should Policymakers or Macro Models Be Taken to the Woodshed?

There’s a good debate going on about the usefulness of macro models, and in particular whether the so-called New Keynesian models let us down or even helped bring on the financial crisis and the Great Recession. This weekend Noah Smith … Continue reading

Posted in Financial Crisis, Teaching Economics

Krugman’s Slack

In a piece yesterday, Paul Krugman disagrees with my assessment that there was more overheating than slack in the economy in the years leading up to the 2007-09 recession and financial crisis. That assessment was one part of a broader … Continue reading

Posted in Financial Crisis, Slow Recovery

More on “It’s Extreme Policies Not Extreme People”

I argue in the Wall Street Journal today that a huge shift to extremely interventionist economic policies in recent years rather than a shift to extremist positions is the source of the recent political clashes and governance crises in the … Continue reading

Posted in Financial Crisis