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

Abstract

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.

Keywords

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 | http://dx.doi.org/10.5018/economics-ejournal.ja.2010-23

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

Currently Chatting

Largest Climate March Ever!

On Sunday, the world's largest climate march took over New York City. In addition to the 400,000 people who showed up to demand change in the Big Apple, hundreds of thousands more joined events in at least 156 counties. From London to Rio to Melbourne to New York, people around the world joined together to demand action on climate change.

Powered by Pressflow, an open source content management system