Economics In The News
Here we will offer selected topics that are either featuring in the economic news or involve significant developments in the state of economic science.
FINANCIAL INSTABILITY AND THE ECONOMIC CRISIS
To supplement some of the on-campus discussions of the current economic crisis, here are a few links to additional resources exploring the current financial meltdown and the likely effects on the economy. Further links to the Federal Reserve and other resources may be found by clicking upon the "Resources in Economics" button on the navigation bar to the left.
International Financial Instability and the Financial Derivatives Market (1996), by Brent McClintock
In one of the few economic predictions I may have, unfortunately, got right, I warned of the systemic risk associated with the derivatives market, the threat of international financial instability, the need for tighter domestic regulation, and an international lender of last resort.
The collapse of the world financial system and the unprecedented large scale reciprocal currency swaps of the major central banks in September - October 2008 are foreshadowed in this article published in an obscure economics journal by an obscure economist at an obscure college. The majority of the work on the article was completed during 1993, 3 years before publication, and some 15 years before the current crisis.
Planet Money
Kenosha Unified School District's Casino Capitalism at work - What Business Does A School District Have Borrowing Money to Engage in Speculation???? A School District has no business operating as an investment bank. Indeed this and the other four school districts involved may have broken state law and IRS regulations in engaging in these transactions.
A pity that these Kenosha folks didn't bother to get some good advice - or cross town to speak with the author of the the 1996 article listed above!
Planet Money
Chicago Public Radio's This American Life with two excellent podcasts - The Giant Pool of Money and Another Frightening Show About the Economy - on the housing crisis (recorded May 2008), the impact on financial markets, and the US government's bailout/rescue package (recorded October 2 2008). Both are excellent surveys of the problems.
Listen to the podcast or read the transcript by clicking on the links below:
Another Frightening Show About the Economy
A Better Mousetrap - 2008 - Oct 10, includes an update on the crisis and stories on people trying to find new solutions to age-old problems. (Not available until Oct. 13).
You can keep up to date with the unfolding crisis by following the Plant Money podcasts and blog created by the journalists who produced the Giant Pool of Money and Another Frightening Show.
The Predator State
Jamie Galbraith on the political economy of the financial crisis, explaining the role of government in contributing to the crisis and its role in securing the future health of the economy.
Video and transcript of his interview by Bill Moyers on Bill Moyer's Journal.
The Bailout Blues
David Cay Johnston the author of Free lunch: How the Wealthiest Americans Enrich Themselves at Government Expense, on The Bailout Blues (Worldview, Chicago Public Radio).
The Political Economy of Iceland - Financial Crisis
Chicago Public Radio's Worldview covers Iceland's "bankruptcy" here.
If you cannot see the Iceland segment, click on the archives tab - then find the October 15, 2008 show. Listen to the Iceland segment.
Russia and the Financial Crisis
Marshall Goldman, Professor Emeritus of Russian Economics at Wellesley College, on Russia's ability to respond to the global financial crisis here.
If you cannot see the Russia segment, click on the archives tab - then find the October 14, 2008 show.
Financial Crisis Discussion Forum at Colorado State University
Four faculty and a banker discuss the causes and consequences of the financial crisis and economic destabilization, including a review of how the Roosevelt administration dealth with the banking crisis in the Great Depression.
The Financial Crisis Forum (click on)
Levy Institute - Analysis of The Contemporary Financial Crisis
Visit the Levy Institute for the latest, updated analysis of the current financial crisis. Look for the Public Policy Briefs - brief is a misnomer because the documents run 50+ pages - or for a shorter version see Public Policy Brief Highlights or Public Policy Notes.
See R Wray, The Commodities Market Bubble, Oct 2008 (long) or Financial Markets Meltdown Sept 2008 (short version).
updated Nov 16, 2008. first listed Oct 11, 2008.