Economic Growth Program: Latest Publications

A Better Way to Regulate Financial Markets

Economic Growth — Thu, 12 Nov 2009 09:14:00 -0500

There is widespread recognition that the financial crisis which triggered the Great Recession was significantly due to financial excess, particularly related to real estate. Now, policymakers are looking to reform financial systems in hope of avoiding future crises. But like the drunk who looks for his lost keys under the lamppost because that is where the light is, policymakers remain fixated on capital standards because that is what is already in place.

A Better Way to Regulate Financial Markets: Asset Based Reserve Requirements

Kate Schuler — Wed, 11 Nov 2009 13:38:00 -0500

There is widespread recognition that the financial crisis, which triggered the Great Recession, was significantly due to financial excess, particularly in real estate lending. Now, policymakers are looking to reform the financial system in hope of avoiding future crises. But like the drunk who looks for his lost keys under the lamppost because that is where the light is, policymakers remain fixated on capital standards because that is what is already in place.

Three Anniversaries

Erin Drankoski — Tue, 10 Nov 2009 13:32:00 -0500

Three calendar dates. Three anniversaries. Three eras in the history of the United States and the world.

Policymakers Beware: Falling $US and Undervalued Yuan a Recipe for Disaster

Erin Drankoski — Tue, 10 Nov 2009 10:31:00 -0500

Over the past several weeks, the US dollar's depreciation against the euro and yen has grabbed global attention.

In a normal world, a weaker US dollar would be welcome, as it would help the US come to grips with its unsustainable trade deficit.

But because China links its yuan to the US dollar at an undervalued parity, the US dollar's depreciation risks major global economic damage, complicating the recovery from the worldwide recession.

All Power to the Choice Architects

Next Social Contract — Mon, 09 Nov 2009 11:43:00 -0500

If we go by election results, and no better guide to our national mood exists, the years of conservative hegemony in the United States are over, at least for the foreseeable future. Not only has the country elected a Democratic president and Congress, but conservative ideas, which once had seemed so innovative, are increasingly stale or non-existent. Meanwhile, the Republican Party seems both directionless and leaderless.