GMU economist and popular blogger Arnold Kling has released a new paper titled: “NOT WHAT THEY HAD IN MIND: A History of Policies that Produced the Financial Crisis of 2008.”
Kling is very much of the view that if you had to choose between blaming private sector greed and public policy, the fault lies in the latter:
As this paper will illustrate, the seeds for much of the current crisis were sown in the policy “solutions” to
previous financial and economic crises. Any attempt to dissect and understand the current crisis that does not account for the complex history, evolution, and integrated nature of financial regulations will not yield meaningful lessons for today’s policy makers.
Among the topics he addresses: housing policy, bank capital regulations, monetary policy, and bank capital regulations. Enjoy.
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