October 28, 2008 § Leave a comment
in the FT writes about he need to move beyond protecting the banks. Can we understand his proposal?
Before our political leaders get too fancy remaking capitalism next month at the Bretton Woods II summit in Washington, they should attend to urgent business. Since the closure of Lehman Brothers triggered a global banking panic, political leaders in the US and Europe have successfully thrown a cordon round their banks to prevent financial meltdown. What they have not done yet is to co-ordinate macro economic policies to stop a steep global downturn. This is the urgent agenda
Advice from seven Nobel laureates on fixing the economy.
Krugman.copy Roosevelt’s 100 days.aid distressed governments,pas a stimulus package.Public works spending. Expanded regulation in capital requirements and oversight. Health are reform.
Michael Spence,Stanford and Hoover.reset terms on montages, make sure short term credit is working, stimulus and dealing with budget deficit, international cooperation and regulation. Another sec like Paulson ..
Stiglitz, to deal with unemployment and little cash we need green and infrastructure projects., raise taxes, bring don cost of military and health.
Edward Prescott.- changing the rules can have unintended consequences. Dont raise taxes on the wealthy.Let the fed do is thing.
Eric Maskin: get money to the banks.they will do he right thing with it.
Ed Phelps. submit CEO salaries to votes of shareholders. make sure banks have best and worst case scenarios. subsidize business to invest.
Clive Granger, credit markets,employment and business incentives.
Seem to not deal with skewed wealth, corruption, and gaming the system.