Blogs

Bankers Will Be Let Off the Hook If We Don't Start to Take Ourselves Seriously

Originally appeared in the Irish Independent

If the banking crisis was a child it would have started school this week. Five years later there is no comprehensive public reporting of the circumstances leading up to the crisis, and the decisions taken immediately afterwards.

Three reports have been written, one in fact a legal inquiry, but these haven't really gotten to the nitty gritty of who knew what – and when – and why they decided as they did. Read more

Adair Turner on Credit, Money, and Leverage

Check out today's Financial Times, where Gillian Tett picked up on Institute Senior Fellow Adair Turner's recent speech to the Stockholm School of Economics: Read more

Current Account Rebalancing Since the Crisis

In the aftermath of the 2008 crisis, renewed attention has been directed to the accumulation and persistence of current account imbalances between countries and to the large role the trade deficit of the United States has played in this area since the 1980s.

Although economists like Wynne Godley had been concerned about the long-run sustainability of this trend before 2008, the need for “rebalancing” trade has emerged as an important part of the post-crisis economic debate. Why is this? Read more

The Next Financial Crisis

Originally appeared in the LA Times

Five years ago, this week, the world of finance and economics changed forever.

At least that's the story.

It started with a sad milestone in Wall Street history: the fall of the House of Lehman. Read more

The End of 'Financialization'

Originally appeared at the Fung Global Institute

The failure of Lehman Brothers on 15 September 2008 marked the beginning of the end of the world's love affair with financialization.

Financialization was one of three megatrends that swept the world in the last thirty years – the others being free markets and globalization. Read more

The Lehman Crisis and the Unfinished Business of Financial Reform

With the collapse of Lehman Brothers in September 2008, a crisis in part driven by derivatives on subprime mortgages, a seemingly obscure sector of the financial market help fuel the worst economic crisis since the Great Depression. Read more

Did Capitalism Fail? Looking Back Five Years After Lehman

Editor's Note: Welcome to Crash Week! This week marks five years since the bankruptcy of Lehman Brothers and the financial crisis that followed. A lot has happened since then, but how much has changed? All week long we will be exploring this question from a variety of economic angles. Below is a piece from Roman Frydman, Chair of the Institute's Program on Imperfect Knowledge Economics (IKE), and Michael Goldberg, who is a senior research associate of the IKE program. Stay tuned for more contributions from our grantees, community members, leaders, and other prominent economic thinkers! Read more

Simon Johnson: The Problem of Too Big to Fail Is Even Bigger Than Before 2008

Editor's Note: Welcome to Crash Week! This week marks five years since the bankruptcy of Lehman Brothers and the financial crisis that followed. A lot has happened since then, but how much has changed? All week long we will be exploring this question from a variety of economic angles. Below is an interview with Institute Advisory Board member Simon Johnson on too big to fail and the debate over financial regulation. Read more

The Failure of Free-Market Finance

Editor's Note: Welcome to Crash Week! This week marks five years since the bankruptcy of Lehman Brothers and the financial crisis that followed. A lot has happened since then, but how much has changed? All week long we will be exploring this question from a variety of economic angles. Below is the second piece from Institute for New Economic Thinking Senior Fellow Adair Turner. You can also check out the first entry from Institute for New Economic Thinking President Rob Johnson. Read more