In part 6 of INET's interview with Lance Taylor, he says that if the government starts thinking it's a household, then we're in a lot of trouble. Unlike families, governments can sustain investment from debt for the long term.
"...The financial collapse of 2007 and the recession that followed left many economists on the defensive. News programs, magazines, pundits, and even the Queen of England all asked some variant of the question, why didn't you see it coming?..."
Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. Read more
"...Maynard Keynes' revenge is simple. He was correct about how to do macroeconomics. Initial information and then revolution against his ideas beginning in the 1940s were misleading and often wrong..."
Lance Taylor, Professor of International Cooperation and Development at the New School for Social Research, argues that the ideas of J. M. Keynes and others provide a more useful framework both for understanding the crisis and for dealing with it effectively. Keynes’s basic points were fundamental uncertainty and the absence of Say’s Law. Read more
Lance Taylor Says the Crisis Once Again Proved the Relevance of Keynes’ Fundamental Insights
Since the financial crisis hit, interest in the economic analysis of John Maynard Keynes has revived and then faded somewhat. Many economists still have had little or no exposure to his theories and ideas.
In INET's complete interview with Erik Berglöf, he catches us up on what has been happening in Europe recently. The topics covered include how the crisis affected development and regulation of the greater Euro zone, and how countries in Asia represent both competition and new opportunities.
In part 6 of INET's interview with Erik Berglöf, he says that developing countries in Europe can learn from the successes and failures of their cohorts -- from Estonian tax advances to Georgia's fight against corruption