Richard Posner, federal judge and prolific author,
discusses the financial crisis with EconTalk host
Russ Roberts. Posner (despite the title of his recent book on the crisis,
A Failure of Capitalism) places most of the blame for the crisis on the Federal Reserve, inattentive regulators and the subsidization of risk. He also criticizes economists for complacency in the face of impending disaster. A recent convert of sorts to Keynesianism, Posner confesses some disillusion with the implementation of the stimulus plan and the expanding role of the Federal government.
"A recent convert of sorts to Keynesianism"
ReplyDeleteWhat about yourself Paul? It seemed to me that the GFC made many economist (including myself) support the fundamentally Keynesian idea of demand stimulation. Agree?
No John, as I see many of the causes of the GFC being government driven I'm less of a Keynesian now than I ever was. But you always were more of a Keynesian than me!!!
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