tailieunhanh - Capitalism Court of Appeals discusses_8

Tham khảo tài liệu 'capitalism court of appeals discusses_8', khoa học xã hội, kinh tế chính trị phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 8 The Economics Profession Asleep at the Switch One of the biggest puzzles about the failure to anticipate the financial crisis is the lack of foresight of so many academic economists. There were exceptions Nouriel Roubini was only the most emphatic of the Cassandras. Raghuram Rajan issued strong warnings in 2005 Paul Krugman in the summer of 2007 Martin Feldstein that fall. I mentioned Robert Shiller. The collapse of Bear Stearns in March 2008 elicited warnings from other economists such as Alan Blinder and Lawrence Summers the latter of whom however had sarcastically dismissed Rajan s warnings three years earlier as leaden-eyed. But as far as I know only Roubini among prominent academic economists forecast an actual depression. Warnings about recession do not attract much attention and perhaps should not. The standard response to a re 252 The Economics Profession Asleep at the Switch cession is for the Federal Reserve to lower interest rates. That is what it did in response to the mild post-9 11 recession thus setting the stage for the credit binge that has precipitated a depression. Macroeconomics and financial economics are highly prestigious fields of economics and the leading macroeconomists and finance theorists are brilliant people. Yet although the housing bubble started to leak air in 2005 and burst in 2006 and the economy was in recession from the end of 2007 at the latest and the drumbeat of signals warning of an impending crash became deafening by the spring of 2008 not enough economists whether in academia the government or business sounded the alarm in time to have a significant impact on the government or the banking industry. Securitization of mortgages and other debts was taken at face value as protecting US against the kind of housing-credit bubbles that had ravished East Asian countries in the 1990s. In May 2006 Federal Reserve chairman Bernanke said that the housing market was cooling but that this cooling was orderly and moderate and that the