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Economics students are - yet again - expressing dissatisfaction with the content of their curriculum. They are right
Just as dammed water finds new channels of escape, crowdfunding seems to provide a way around the blockage.
If I had a million pounds for every time I have heard a possible reform opposed because “it wouldn’t have prevented Northern Rock or Lehman Brothers going bust”, I might now have enough money to bail out a bank.
Financial economics, for half a century a showpiece in economic departments, is today struggling to maintain credibility in the face of the financial instability of the past two decades.
The further one moves from mechanisms that are well understood and events that are frequently repeated, the less appropriate is the use of probabilistic language.
Having invented the concept of GSifi to describe too-big-to-fail banks, the world’s financial regulators are on the hunt for other businesses which can be treated in a similar way.
In the modern financial economy, the main effect of QE is to boost asset prices, as market gyrations of recent weeks have clearly illustrated. But is the pursuit of higher asset prices an effective or desirable means of promoting economic growth?