The Crisis and Beyond: Thinking Outside the Box

1 post / 0 new

The Crisis and Beyond:

Thinking Outside the Box

Claude Hillinger

University of Munich


In this paper the author attempts an analysis of the current financial/economic crisis that is wider ranging and more fundamental than he has been able to find. He discusses alternatives to the financial bailouts and shows how the crisis could have been dealt with more efficiently and at little cost to taxpayers. Finally, the author discusses fundamental reforms that would reduce the volatility of financial markets and increase their efficiency. He reviews some social science literature that views the current crisis as an episode in the secular decline of the United States and more generally of the Western Democracies. The timidity of current reforms, which is striking when compared to those that followed the excesses of the Gilded Age and the Great Depression, can be understood in this framework. The author concludes that the industrialized world is now dominated by a ‘financial-political complex’ that maximizes speculative profits in good times and socializes losses in times of crisis.


Deficit financing; financial crisis; financial instability; full

Claude Hillinger is a professor at the University of Munich.

to read the 63 page paper "The Crisis and Beyond: Thinking Outside the Box," click on

Vol. 4, 2010-23 | August 5, 2010 |

demandside's picture
Jul. 31, 2007 4:01 pm

Latest Headlines

White House opposes bill blocking Iran nuclear deal

President Barack Obama will veto the bill, saying that the Iran nuclear deal addresses only nuclear issues

Where would Afghanistan be today if the US and Russia had just left it alone?

The United States and Russia are really in a very awkward place right now

Kremlin: Syria air strikes target 'a list' of groups

US Senator John McCain said he can confirm Russian air strikes were against the Free Syrian Army recruits

"The market has become tilted..."

It seems like the most popular word in this election cycle is 'inequality,' but we need more than talk to narrow the great divide between the haves and have-nots in our nation.

According to a recent article by former Labor Secretary Robert Reich, the pro-corporate elite have rigged the system against us, and it's going to take the majority of us standing together to change the system.

Powered by Drupal, an open source content management system