President and Owner at McKay Advertising + ActivationFlorida’s premier digital media agency Getty The immediate response of comparing this financial crisis of 2020 to the financial crisis of 2008 is a natural reaction. Human psychology shows our need to develop a baseline of what we have experienced. Some of theRead More →

Focus Growth and productivity are consistently weak following financial crises. This article examines how financial crises affect innovation. Patents are an important measure of the type of innovative activity that can lead to productivity gains. We study patent data from a large sample of countries and financial crises and examineRead More →

We learned this month that the US Federal Reserve decided not to raise the countercyclical capital buffer required of banks above its current level of zero, even as the US economy is at a cyclical peak. It also removed “qualitative” ratings from its stress tests for US banks, but notRead More →

ABSTRACT In OECD countries, over the period 1980-2017, countries with lower debt-to-GDP ratios responded to financial difficulties with much more expansionary fiscal policy and suffered much less severe consequences. Two lines of evidence suggest that the relationship between debt ratio and policy response is determined in part by sovereign marketRead More →

According to the United States Commission of Inquiry into the Financial Crisis, the main causes of the 2007-2009 financial crisis were failures in corporate governance and policies, including widespread failures in financial regulation and supervision, lack of transparency, poor government preparedness, and systemic failure of accountability. The Commission concluded thatRead More →

Until the eve of the crisis of 1929, the worst that America had ever known, everything was rosy. Cars and construction flourished in the 1920s, and strong jobs in both industries helped raise wages and consumption. Ford was making 9,000 of its Model T cars a day, and spending onRead More →

The 21st century has proven economically as tumultuous as the previous two centuries. This period saw multiple financial crises hit nations, regions and, in the case of the Great Recession, the entire global economy. All financial crises share certain characteristics, but each tells its own unique story with its ownRead More →

Adam Smith wrote of the “invisible hand”, whereby the pursuit of the self-interest of individuals in free and competitive markets advances the interest of society as a whole. And Smith was right: free markets have generated unprecedented prosperity for individuals and societies. But, because we can be manipulated or trickedRead More →