Name and Link Type of Resource Description
Bernanke: There's No Housing Bubble to Go Bust
Fed Nominee Has Said 'Cooling' Won't Hurt
By Nell Henderson, Washington Post Staff Writer October 27, 2005;
Available Here
Newspaper article "Thursday, October 27, 2005. Ben S. Bernanke does not think the national housing boom is a bubble that is about to burst, he indicated to Congress last week, just a few days before President Bush nominated him to become the next chairman of the Federal Reserve. U.S. house prices have risen by nearly 25 percent over the past two years, noted Bernanke, currently chairman of the president's Council of Economic Advisers, in testimony to Congress's Joint Economic Committee. But these increases, he said, "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households."
L. Randall Wray
Financial Markets Meltdown. What Can We Learn from Minsky?
Levy Economics Institute, Public Policy Brief April 2008
Available Here
Article "Randall Wray explains today’s complex and fragile financial system, and how the seeds of crisis were sown by lax oversight, deregulation, and risky innovations such as securitization. He estimates that the combined losses throughout the entire financial sector could amount to several trillion dollars, and that the United States will feel the effects of the crisis for some time—perhaps a decade or more. Wray recommends enhanced oversight of financial institutions, much larger stimulus packages, and creation of a new institution in line with President Franklin D. Roosevelt’s Home Owners’ Loan Corporation."
Paul Davidson
Health warning for a computer age
Asia Times Online Nov 2008
Available Here
Article "The winter of 2007-2008 will prove to be one of discontent and the beginning of the end in the classical theory of the efficiency of global financial markets. For more than three decades, mainstream economists had preached, and politicians had swallowed, the myth of the efficiency of such free markets. Those who do not study the lessons of history are bound to repeat its errors. Economists forgot the events of the Great Depression and the collapse of unfettered financial markets that followed the "Roaring Twenties" prosperity. For history has repeated itself with the growth of deregulated markets and the prosperity of the 1990s ending up in 2008 with the greatest recession since the Great Depression …….."
Wynne Godley, Dimitri B. Papadimitriou, Gennaro Zezza
Prospects for the United States and the World: A Crisis That Conventional Remedies Cannot Resolve
Levy Economics Institute.Strategic Analysis December 2008
Available Here as well as link to previous years' Strategic Analysis reports, cited in the text.
Article "The prospects for the U.S. economy have become uniquely dreadful, if not frightening. In this paper we argue, as starkly as we can, that the United States and the rest of the world’s economies will not be able to achieve balanced growth and full employment unless they are able to agree upon and implement an entirely new way of running the global economy.......During the last 10 years, the Levy Institute has published a series of Strategic Analyses, of which the original object was, not to make short-term forecasts, but to set forth a range of scenarios that displayed, over a period of five to 15 years, the likely obstacles to growth with full employment. In the first of these papers, published in 1999, at a time when there was an emphatic consensus that “the good times were here to stay,” we took the contrarian view—well ahead of the curve—that unsustainable imbalances were building up that would eventually require both a large fiscal stimulus and a sustained rise in net exports, preferably via a substantial depreciation of the dollar."
UK seminar: Developing joint UK policy responses to the financial and economic crisis
15 December 2008, Seminar The SOAS Research on Money and Finance (RMF) group
Available Here
Links to contributions by
Robert Wade, Audio Here | Video Here
Philip Arestis, Audio Here | Video Here
Jan Toporowski, Audio Here | Video Here
Costas Lapavitsas, Audio Here | Video Here
Seminar report and links to audio and video "On 15 December the SOAS Research on Money and Finance (RMF) group, in conjunction with BOND and the Bretton Woods project, hosted a follow up to October's UK seminar on the financial crisis. The first event highlighted the causes of the financial crisis and this seminar aimed to utilise academic work on the topic in the development of coherent policy responses.
50 representatives of NGOs, development organisations, labour unions, think tanks, and academia discussed recent developments of the current crisis and the role and aims of civil society organisations in the lead up to the G20 meeting to be held in London in April 2009."
James Crotty and Gerald Epstein
Avoiding Another Meltdown
Challenge Magazine, January-February, 2009, pp. 5 – 26.
Available here
Also see their synopsis here
Article "The authors argue that the current financial crisis, the worst since the Great Depression, can be seen as the latest phase in the evolution of fi nancial markets under a radical fi nancial deregulation process that began in the late 1970s. Deregulation accompanied by rapid fi nancial innovation stimulated powerful booms that ended in crises. But governments responded to the crises with new bailouts that allowed new expansions to begin. As a result, fi nancial markets have become ever larger, and the crises have become more threatening to society, which forces governments to enact ever larger bailouts. The authors provide a comprehensive set of regulatory solutions they believe will sharply reduce financial instability. "
Jan Kregel
It’s That “Vision” Thing: Why the Bailouts Aren’t Working, and Why a New Financial System Is Needed
Levy Economics Institute. Public Policy Brief No. 100, 2009
Available Here
Article "The Federal Reserve’s response to the current financial crisis has been praised because it introduced a zero interest rate policy more rapidly than the Bank of Japan (during the Japanese crisis of the 1990s) and embraced massive “quantitative easing.” However, despite vast capital injections, the banking system is not lending in support of the private sector. Senior Scholar Jan Kregel compares the current situation with the Great Depression, and finds an absence of New Deal measures and institutions in the current rescue packages. The lessons of the Great Depression suggest that any successful policy requires fundamental structural reform, an understanding of how the financial system failed, and the introduction of a new financial structure (in a short space of time) that is designed to correct these failures. The current crisis could have been avoided if increased household consumption had been financed through wage increases, says Kregel, and if financial institutions had used their earnings to augment bank capital rather than bonuses. "
James K. Galbraith
Why the economic crisis, and its solution, are bigger than you think.
Washington Monthly, March/April 2009-04-09
Available Here
Article ""
James K. Galbraith
A “People First” Strategy: Credit Cannot Flow When There Are No Creditworthy Borrowers or Profitable Projects
Levy Economics Institute, Strategic Analysis, April 2009
Available at this page
Article "We are in the shadow of a global catastrophe, and we need to come to grips with the crisis—fast. According to Senior Scholar James K. Galbraith, two ingrained habits are leading to our failure to do so. The first is the assumption that economies will eventually return to normal on their own—an overly hopeful view that doesn’t take into account the massive pay-down of household debt resulting from the collapse of the banks. The second bad habit is the belief that recovery runs through the banks rather than around them. But credit cannot flow when there are no creditworthy borrowers or profitable projects; banks have failed, and the failure to recognize this is a recipe for wild speculation and control fraud, compounding taxpayer losses."
Bill Mitchell
The “gas now, pay later” myth
May 29th 2010, Author's Web Blog,
Bill Mitchell is the Research Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the University of Newcastle, NSW Australia.
Available at this page
Author's Blog EXTRACT"Today I was reflecting on a book I read a few weeks ago which has been picked up by progressives and the mainstream alike as a visionary construction of the latest crisis and its remedies. It is so comprehensively wrong that I am amazed celebrated. It reinforces another theme that the mainstream conservatives are increasingly rehearsing in the media and in policy debates – governments have exhausted their options and have to take fiscal austerity measures as the only way to bring their public debt ratios under control. The point is clear – there is very little concrete argument about how the proponents of austerity see growth returning. There is a lot on cutting peoples’ living standards via prolonged unemployment, the retrenchment of pension and health entitlements etc; transferring public assets via privatisations – but not a lot on how austerity promotes growth. Further, the idea that sovereign governments have exhausted their fiscal space is just a total fallacy. They may have exhausted their political space but that is quite a different matter requiring a different solution. "
Bill Mitchell
Why pander to the financial markets?
Feb 11th 2009, Author's Web Blog,
Bill Mitchell is the Research Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the University of Newcastle, NSW Australia.
Available at this page
Author's Blog EXTRACT"….Underpinning this policy slant is the aberrant notion that the nation will be unable to resume growth unless new (outside) financial capital is forthcoming. A sovereign government is never hostage to the dictates of financial capital. A nation that adopts its own floating rate currency can always afford to put unemployed domestic resources to work. Its government may issue liabilities denominated in its own currency (for interest-rate maintenance reasons), and will service any debt it issues in its own currency. Whether its debt is held internally or externally, it faces no insolvency risk. Further, the floating currency gives domestic policy an additional degree of freedom. This does not mean that the nation will necessarily ignore its trade balance or movements of its exchange rate, but it does mean that it can put domestic employment and growth at the top of its policy agenda……. "
Also see specific Newspaper Comment and Correspondence on these these issues:-
The Role of Fiscal Deficits
Global Imbalances