Russ Roberts

Financial Crisis of 2008 Podcast Episodes and Extras

Category Archive with 57 podcast episodes and extras
 

Calomiris and Haber on Fragile by Design

EconTalk Episode with Charles Calomiris and Stephen Haber
Hosted by Russ Roberts

Charles Calomiris of Columbia University and Stephen Haber of Stanford University, co-authors of Fragile by Design: The Political Origins of Banking Crises and Scarce Credit, talk with EconTalk host Russ Roberts about their book. The conversation focuses on how politics and economics interact to give some countries such as Canada a remarkably stable financial system while others such as the United States have a much less stable system. The two authors discuss the political forces that explain the persistence of seemingly bad financial regulation. The conversation includes a discussion of the financial crisis of 2008.

Size:35.3 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Richard Fisher on Too Big to Fail and the Fed

EconTalk Episode with Richard Fisher
Hosted by Russ Roberts

Richard Fisher, President of the Federal Reserve Bank of Dallas, talks with EconTalk host Russ Roberts about the problems with "too big to fail"--the policy idea that certain financial institutions are too large to face the bankruptcy or failure and need to be rescued or bailed-out. Fisher argues that "too big to fail" remains a serious problem despite claims that recent financial regulation has eliminated it. Fisher discusses various ways to deal with too-big-to-fail, including his own preferred policy. The last part of the conversation deals with quantitative easing and monetary policy during the crisis.

Size:27.7 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Calvo on the Crisis, Money, and Macro

EconTalk Episode with Guillermo Calvo
Hosted by Russ Roberts

Guillermo Calvo of Columbia University and the National Bureau of Economic Research talks with EconTalk host Russ Roberts about the nature of macroeconomic crises and what we have learned or should have learned in the aftermath of the most recent one. Based loosely on his recent paper, "Puzzling Over the Anatomy of Crises," Calvo discusses a wide array of issues related to macroeconomics and the role of financial instability in economy-wide crises. Topics include the role of money, the problem of short-term lending in the financial sector, the black-box approach of modern macroeconomic theory and the forgotten economists we might want to reconsider.

Size:32.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

David Laidler on Money

EconTalk Episode with David Laidler
Hosted by Russ Roberts

David Laidler of the University of Western Ontario talks about money and monetary policy with EconTalk host Russ Roberts. Laidler sketches the monetarist approach to the Great Depression and the Great Recession. He defends the Federal Reserve's performance in the recent crisis against the critics. He argues that the Fed's monetary policies have not been unconventional nor impotent as some critics have suggested. The conversation closes with a discussion of the state of macroeconomics and monetary economics.

Size:29.7 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Sachs on the Crisis, the Recovery, and the Future

EconTalk Episode with Jeffrey Sachs
Hosted by Russ Roberts

Jeffrey Sachs of Columbia University and author of The Price of Civilization talks with EconTalk host Russ Roberts about the state of the American economy. Sachs sees the current malaise as a chronic problem rather than a short-term challenge caused by the business cycle. He lists a whole host of issues he thinks policymakers need to deal with including the environment, inequality, and infrastructure. He disagrees with the Keynesian prescriptions for stimulating the economy and believes that the federal government budget deficits are a serious problem. The conversation closes with a discussion of the state of economics.

Size: 31.1 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Admati on Bank Regulation and the Bankers' New Clothes

EconTalk Episode with Anat Admati
Hosted by Russ Roberts

Anat Admati of Stanford University talks with EconTalk host Russ Roberts about her new book (co-authored with Martin Hellwig), The Bankers' New Clothes. Admati argues that the best way to reduce the fragility of the banking system is to increase capital requirements--that is, require banks to finance their activities with a greater proportion of equity rather than debt. She explains how debt magnifies returns and losses while making each bank more fragile. Despite claims to the contrary, she argues that the costs of reducing debt are relatively small for society as a whole while the benefits are substantial.

Size: 27.6 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Sumner on Money, Business Cycles, and Monetary Policy

EconTalk Episode with Scott Sumner
Hosted by Russ Roberts

Scott Sumner of Bentley University and blogger at The Money Illusion talks with EconTalk host Russ Roberts about the basics of money, monetary policy, and the Fed. After a discussion of some of the basics of the money supply, Sumner explains why he thinks monetary policy in the United States during and since the crisis has been inadequate. Sumner stresses the importance of the Fed setting expectations and he argues for the dominance of monetary policy over fiscal policy.

Size: 32.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Cathy O'Neil on Wall St and Occupy Wall Street

EconTalk Episode with Cathy O'Neil
Hosted by Russ Roberts

Cathy O'Neil, data scientist and blogger at mathbabe.org, talks with EconTalk host Russ Roberts about her journey from Wall Street to Occupy Wall Street. She talks about her experiences on Wall Street that ultimately led her to join the Occupy Wall Street movement. Along the way, the conversation includes a look at the reliability of financial modeling, the role financial models played in the crisis, and the potential for shame to limit dishonest behavior in the financial sector and elsewhere.

Size: 29.3 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Mulligan on Redistribution, Unemployment, and the Labor Market

EconTalk Episode with Casey Mulligan
Hosted by Russ Roberts

Casey Mulligan of the University of Chicago and the author of The Redistribution Recession, talks with EconTalk host Russ Roberts about the ideas in the book. Mulligan argues that increases in the benefits available to unemployed workers explains the depth of the Great Recession that began in 2007 and the slowness of the recovery particularly in the labor market. Mulligan argues that other macroeconomic explanations ignore the microeconomic incentives facing workers and employers.

Size: 30.1 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Garett Jones on Fisher, Debt, and Deflation

EconTalk Episode with Garett Jones
Hosted by Russ Roberts

Garett Jones of George Mason University talks with EconTalk host Russ Roberts about the ideas of Irving Fisher on debt and deflation. In a book, Booms and Depressions and in a 1933 Econometrica article, Fisher argued that debt-fueled investment booms lead to liquidation of assets at unexpectedly low prices followed by a contraction in the money supply which leads to deflation and a contraction in the real side of the economy--a recession or a depression. Jones then discusses the relevance of Fisher's theory for the current state of the economy in the aftermath of the financial crisis.

Size: 28.2 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Frank and Roberts on Infrastructure

EconTalk Episode with Robert Frank
Hosted by Russ Roberts

Robert Frank of Cornell University and EconTalk host Russ Roberts debate the merits of a large increase of infrastructure spending. In the summer of 2012, Frank and Roberts were interviewed by Alex Blumberg of NPR's Planet Money. That interview was trimmed to ten minutes for a Planet Money podcast. This is the entire conversation. Frank argues that a trillion increase in infrastructure spending, where the projects are decided by a bipartisan commission, would put people back to work and repair a near-failing system at a time when it is cheap to repair it and cheap to fund those repairs. Roberts disagrees with virtually every piece of Frank's argument. This lively conversation covers fundamental disagreements over fiscal policy, the proper role for government, and the political process.

Size: 25.6 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Barofsky on Bailouts

EconTalk Episode with Neil Barofsky
Hosted by Russ Roberts

Neil Barofsky, author of Bailout and the former Special Inspector General for the TARP program, talks with EconTalk host Russ Roberts about his book and the government bailouts by the Bush and Obama Administrations. Barofsky recounts what he learned about how Washington works and the incentives facing politicians and bureaucrats. His book and this interview are a workshop in public choice economics. Along the way he unravels some of the acronyms of the last few years including TARP, TALF, and HAMP. The conversation concludes with lessons learned by Barofsky and what might be done in the future to prevent the corruption and ineffectiveness of past bailouts.

Size: 28.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Ohanian on the Great Recession and the Labor Market

EconTalk Episode with Lee Ohanian
Hosted by Russ Roberts

Lee Ohanian of UCLA talks with EconTalk host Russ Roberts about the recession, the recovery, and the state of labor market. Ohanian describes the unusual aspects of this recession and recovery in the United States as shown by the labor market and the unusual performance of hours worked, productivity, and wages. He also discusses the behavior of business investment and speculates as to why this recession and the recovery has been so different in the United States. The conversation closes with a discussion of the role of the foreclosure process in encouraging unemployment.

Size: 34.2 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Stiglitz on Inequality

EconTalk Episode with Joseph Stiglitz
Hosted by Russ Roberts

Nobel Laureate Joseph Stiglitz of Columbia University talks with EconTalk host Russ Roberts about the ideas in his recent book, The Price of Inequality. Stiglitz argues that the American economy is dysfunctional, benefitting only those at the very top while the bulk of the workforce sees little or no gain in their standard of living over recent decades. Stiglitz blames this result on deregulation and the political power of the financial sector and others at the top. He wants an increase in regulation and the role of government in the economy and a more transparent Federal Reserve Bank that he blames for coddling the financial sector. The conversation also includes a discussion of the Keynesian multiplier.

Size: 31.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Zingales on Capitalism and Crony Capitalism

EconTalk Episode with Luigi Zingales
Hosted by Russ Roberts

Luigi Zingales of the University of Chicago and author of A Capitalism for the People talks with EconTalk host Russ Roberts about the ideas in his book. Zingales argues that the financial sector has used its political power to enhance the size of the sector and the compensations executives receive. This is symptomatic of a larger problem where special interests steer resources and favors based on their political influence. Zingales argues for a capitalism for the people rather than a capitalism for cronies or the politically powerful. The conversation concludes with a plea by Zingales to his fellow economists to speak out against behavior that is legal but immoral--lobbying Congress for special treatment that exploits others to benefit one's own industry, for example.

Size: 30.3 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Taylor on Rules, Discretion, and First Principles

EconTalk Episode with John Taylor
Hosted by Russ Roberts

John Taylor of Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about his new book, First Principles: Five Keys to Restoring America's Prosperity. Taylor argues that when economic policy adhere to the right basic principles such as keeping rules rather than using discretion, then the economy thrives. Ignoring these principles, Taylor argues, leads to bad economic outcomes such as recessions, inflation, or high unemployment. Taylor illustrates these ideas with a whirlwind tour of the last half century of American economic policy and history. The focus is on monetary and fiscal policy but Taylor also discusses health care reform and other policy areas. The conversation closes with a look at the likelihood that economic policy will change dramatically after 2012.

Size: 28.4 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Calomiris on Capital Requirements, Leverage, and Financial Regulation

EconTalk Episode with Charles Calomiris
Hosted by Russ Roberts

Charles Calomiris of Columbia University talks with EconTalk host Russ Roberts about corporate debt, capital requirements, and financial regulation. This is an in-depth conversation about how debt works on a firm's balance sheet and the risks that debt vs. equity pose for the survival of the firm. Calomiris applies these insights to financial regulation--how it works in practice and the firm's choices in responding to various interventions including bailouts and capital requirements. The conversation closes with a discussion of some of the government interventions in the financial crisis.

Size: 40.1 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

William Black on Financial Fraud

EconTalk Episode with William Black
Hosted by Russ Roberts

William Black of University of Missouri-Kansas City and author of The Best Way to Rob a Bank Is to Own One, talks with EconTalk host Russ Roberts about financial fraud, starting with the Savings and Loan debacle up through the current financial crisis. Black explains how bank executives can use fraudulent loans to inflate the size of their bank in order to justify large compensation packages. He argues that "liar loans" were a major part of the crisis and that policy changes made it easy to generate such loans without criminal repercussions.

Size: 37.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Fama on Finance

EconTalk Episode with Eugene Fama
Hosted by Russ Roberts

Eugene Fama of the University of Chicago talks with EconTalk host Russ Roberts about the evolution of finance, the efficient market hypothesis, the current crisis, the economics of stimulus, and the role of empirical work in finance and economics.

Size: 28.3 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Dean Baker on the Crisis

EconTalk Episode with Dean Baker
Hosted by Russ Roberts

Dean Baker of the Center for Economic Policy and Research talks with EconTalk host Russ Roberts about the financial crisis. Baker sees the crisis as part of a broader set of phenomena--rising inequality and declining unionization. Baker is highly critical on both economic and political grounds of the policy attempts to stimulate the economy as well as the governance structure of the Federal Reserve. The conversation closes with a discussion of potential innovations to lower the budgetary cost of health care.

Size: 29.3 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Sumner on Money and the Fed

EconTalk Episode with Scott Sumner
Hosted by Russ Roberts

Scott Sumner of Bentley University and the blog The Money Illusion talks with EconTalk host Russ Roberts about the state of monetary policy, the actions of the Federal Reserve over the past two years and the state of the economy. Sumner argues that monetary policy has been too tight and helped create the crisis. He disputes the relevance of the so-called liquidity trap and argues that aggressive monetary policy is both possible and desirable. The conversation closes with a discussion of what we have learned and failed to learn during the crisis.

Size: 31.1 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Cowen on the European Crisis

EconTalk Episode with Tyler Cowen
Hosted by Russ Roberts

Tyler Cowen of George Mason University talks with EconTalk host Russ Roberts about the European crisis. Cowen argues that Greece is likely to default either in fact or in spirit but that the key question is which nations might follow--whether Italy and Spain can find a road to economic health and honoring past debts. Cowen gives his best guess as to what is likely to happen to the euro and the European Union and the implications for the rest of the world. He explores some less likely scenarios as well. He is pessimistic about Greece and the short-run prospects for preserving the status quo, but he is optimistic in the long-run about the European Union though it may have a different structure down the road.

Size: 26.7 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Simon Johnson on the Financial Crisis

EconTalk Episode with Simon Johnson
Hosted by Russ Roberts

Simon Johnson of MIT and the author (with James Kwak) of 13 Bankers talks with EconTalk host Russ Roberts about the origins of the financial crisis and how the next one might be prevented. Invoking the work of George Stigler, Johnson argues that the financial sector has captured the regulatory process and the result is that regulation and government intervention have been steered more by the interests of the financial sector than to the benefit of the general public. Johnson argues for capping the size of banks in order to reduce the danger of systemic risk and the too-big-to-fail excuse for bailing out banks. Johnson also discusses the role of the Fed in subsidizing risk-taking and leverage in the financial sector.

Size: 29.8 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Kaplan on the Inequality and the Top 1%

EconTalk Episode with Steven Kaplan
Hosted by Russ Roberts

Steven Kaplan of the University of Chicago talks with EconTalk host Russ Roberts about the richest Americans and income inequality. Drawing on work with Joshua Rauh, Kaplan talks about the composition of the richest 1% and 1/10 of 1%--what proportions come from the financial sector, CEOs from non-financial corporations, athletes, lawyers and so on. Then he discusses how the incomes of these different groups have changed over time. Kaplan argues that these groups have increased their incomes by similar proportions, suggesting that a failure of corporate governance is not the explanation of rising CEO pay. The discussion closes with a discussion of the financial crisis and the compensation in the financial sector.

Size: 30.1 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Garett Jones on Stimulus

EconTalk Episode with Garett Jones
Hosted by Russ Roberts

Garett Jones of George Mason University talks with EconTalk host Russ Roberts about the workers who were hired with money from the 2009 American Recovery and Re-investment Act--the stimulus package. Jones (with co-author Daniel Rothschild) recently completed two studies based on surveys and interviews with firms who received stimulus funds and workers who work at those firms. They found that 42% of workers hired had been unemployed. The remainder came from other jobs or from outside the labor force such as retirement or school. Is 42% a big number or a small number? Jones argues it is small and defends his conclusion. The conversation also includes a discussion of the labor market generally and why the stimulus spending may not have been effective.

Size: 28.7 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Taylor on Fiscal and Monetary Policy

EconTalk Episode with John Taylor
Hosted by Russ Roberts

John Taylor of Stanford University talks with EconTalk host Russ Roberts about the state of the economy and the prospects for recovery. Taylor argues that the design of the fiscal stimulus was ineffective and monetary policy, so-called quantitative easing, has also failed to improve matters. He argues for a return to fiscal, monetary, and regulatory normalcy as the best hope for economic improvement. The conversation concludes with a discussion of the impact of the current crisis on economics education.

Size: 27.4 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Skeel on Bankruptcy and the Auto Industry Bailout

EconTalk Episode with David Skeel
Hosted by Russ Roberts

David Skeel of the University of Pennsylvania Law School talks with EconTalk host Russ Roberts about bankruptcy and the government bailout of the auto industry. Skeel argues that the bailout damaged the rule of law by not allowing a bankruptcy procedure to take its course. Skeel speculates on how bankruptcy for GM and Chrysler might have proceeded. He also argues that the costs to the taxpayer of the bailout have been underestimated. The conversation concludes with a general discussion of the effects of bankruptcy.

Size: 28.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Eichengreen on the Dollar and International Finance

EconTalk Episode with Barry Eichengreen
Hosted by Russ Roberts

Barry Eichengreen of University of California, Berkeley and author of Exorbitant Privilege talks with EconTalk host Russ Roberts about the history and importance of the dollar as the dominant international currency. Eichengreen explains the advantages to the United States of the dollar's dominance, the historical circumstances that led to its dominance, and the likelihood that the dollar might be supplanted by a competitor. Along the way they discuss China's currency policy, the state of U.S. monetary policy, the causes of the crisis, the risk of inflation in the United States, and the future of the Federal Reserve.

Size: 30.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Vincent Reinhart on Bear Stearns, Lehman Brothers, and the Financial Crisis

EconTalk Episode with Vincent Reinhart
Hosted by Russ Roberts

Vincent Reinhart of the American Enterprise Institute talks with EconTalk host Russ Roberts about the government interventions and non-interventions into financial markets in 2008. Conventional wisdom holds that the failure to intervene in the collapse of Lehman Brothers precipitated the crisis. Reinhart argues that the key event occurred months earlier when the government engineered a shotgun marriage of Bear Stearns to JP Morgan Chase by guaranteeing billion of Bear's assets and sending a signal to creditors that risky lending might come without a cost. Reinhart argues that there is a wider menu of choices available to policy makers than simply rescue or no rescue, and that it is important to take action before the crisis comes to a head.

Size: 31.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Coyle on the Economics of Enough

EconTalk Episode with Diane Coyle
Hosted by Russ Roberts

Diane Coyle, author of The Economics of Enough, talks with EconTalk host Russ Roberts about the future and the ideas in her book. Coyle argues that the financial crisis, the entitlement crisis, and climate change all reflect a failure to deal with the future appropriately. The conversation ranges across a wide range of issues including debt, the financial sector, and the demographic challenges of an aging population that is promised generous retirement and health benefits. Coyle argues for better measurement of the government budget and suggests ways that the political process might be made more effective.

Size: 26.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Acemoglu on Inequality and the Financial Crisis

EconTalk Episode with Daron Acemoglu
Hosted by Russ Roberts

Daron Acemoglu of MIT talks with EconTalk host Russ Roberts about the role income inequality may have played in creating the financial crisis. Raghuram Rajan in his book, Fault Lines, argues that growing income inequality in the last part of the 20th century created a political demand for redistribution and various policy changes. This in turn created the push for higher home ownership rates and led to the distortions of the housing market that in turn led to excessive risk-taking in the financial market. Acemoglu suggests a simpler story where the financial sector through its political influence distorted the rules of the game, benefiting executives in the industry, which in turn led to outsized rewards and ultimate instability in the financial industry. The conversation discusses ways of distinguishing between these two arguments and what might be done to change the incentives of politicians.

Size: 29.2 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Kling on Patterns of Sustainable Specialization and Trade

EconTalk Episode with Arnold Kling
Hosted by Russ Roberts

Arnold Kling of EconLog talks with EconTalk host Russ Roberts about a new paradigm for thinking about macroeconomics and the labor market. Kling calls it PSST--patterns of sustainable specialization and trade. Kling rejects the Keynesian approach that emphasizes shortfalls in aggregate demand arguing that the aggregate demand approach masks the underlying complexity of the recalculations that periodically take place in a dynamic economy. Instead, Kling invokes the mutual exploration between entrepreneurs and workers for profitable opportunities that pay well using the workers' skills. This exploration takes time, involves trial and error, and can have false starts because businesses sometimes fail or employees are difficult to find or match with employment opportunities. Kling applies these ideas to the current crisis to explain why labor market recovery is so sluggish and what might policies might improve matters.

Size: 31.8 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Fazzari on Stimulus and Keynes

EconTalk Episode with Steve Fazzari
Hosted by Russ Roberts

Steve Fazzari of Washington University in St. Louis talks with EconTalk host Russ Roberts about the economics of Keynesian stimulus. They discuss the stimulus package passed in February 2009 and whether it improved the economy and created jobs. How should claims about its impact be evaluated? What can we know as economists about causal relationships in a complex world? The conversation includes a discussion of the underlying logic of Keynesian stimulus and the effect of the financial crisis on economic research and teaching.

Size: 27.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Nocera on the Crisis and All the Devils Are Here

EconTalk Episode with Joe Nocera
Hosted by Russ Roberts

Joe Nocera, New York Times columnist and co-author with Bethany McLean of All the Devils Are Here, talks with EconTalk host Russ Roberts about the origins of the financial crisis. Drawing on his book, Nocera identifies many people he considers devils for contributing to the crisis and a few angels who tried but failed to stop it. The discussion covers the history and development of securitization and the peculiar incentives created by securitization and the relative lack of regulation of the securitization process. The conversation also includes a discussion of whether past bailouts contributed to the crisis.

Size: 28.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Selgin on the Fed

EconTalk Episode with George Selgin
Hosted by Russ Roberts

George Selgin, of the University of Georgia, talks with EconTalk host Russ Roberts about whether the creation of the Federal Reserve in 1913 has been a boon or a bust for the U.S. economy. Drawing on a recent paper with William Lastrapes and Lawrence White recently released by the Cato Institute, "Has the Fed Been a Failure?" Selgin argues that the Fed has done poorly at two missions often deemed to justify a Central Bank: lender of last resort and smoother of the business cycle. Selgin makes the case that avoiding bank runs and bank panics does not require a central bank and that contrary to received wisdom, it is hard to argue that the Fed has smoothed the business cycle. Additional topics discussed include whether the Fed has the information to do its jobs well, the role of the Fed in moral hazard, and the potential for the gold standard to outperform the Fed.

Size: 35.8 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Quiggin on Zombie Economics

EconTalk Episode with John Quiggin
Hosted by Russ Roberts

John Quiggin of Crooked Timber and the author of Zombie Economics talks with EconTalk host Russ Roberts about ideas in economics that should stay dead and buried. Quiggin argues that many economic theories such as the Great Moderation, the efficient markets hypothesis and others have been discredited by recent events and should be relegated to the graveyard. Roberts challenges some of Quiggin's claims and wonders whether proposed alternatives might do even worse than the policies Quiggin is criticizing. Much of the conversation focuses on the role of government in the financial sector and how that might be improved going forward.

Size: 29.8 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Taylor on the State of the Economy

EconTalk Episode with John Taylor
Hosted by Russ Roberts

John Taylor of Stanford University talks with EconTalk host Russ Roberts about the state of the economy. Is the economy recovering? What policies have helped and hurt? Taylor gives his views on both monetary and fiscal policy including the stimulus package passed last year, and current Fed policy. The conversation closes with a discussion of the global economy, particularly Poland and its recent success in avoiding recession.

Size: 26.8 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Kling on the Unseen World of Banking, Mortgages, and Government

EconTalk Episode with Arnold Kling
Hosted by Russ Roberts

Arnold Kling of EconLog talks with EconTalk host Russ Roberts about the weird world of banking. Why do mortgages look the way they do? What do banks contribute to economic activity? How does regulation and legislation change the structure of what banks do? What would banks look like and the housing market look like if government were less involved? Kling discusses these questions and more including the hidden subsidies built into the current structure of the mortgage market. The conversation is an imaginative exercise in the microeconomics of finance and credit.

Size: 28.2 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Roberts on the Crisis

EconTalk Episode with Russ Roberts
Hosted by Russ Roberts

Russ Roberts, host of EconTalk, discusses his paper, "Gambling with Other People's Money: How Perverted Incentives Created the Financial Crisis." Roberts reflects on the past eighteen months of podcasts on the crisis, and then turns to his own take, a narrative that emphasizes the role of government rescues of creditors and the incentives this created for imprudent lending. He also discusses U.S. housing policy, particularly the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac and how the government's implicit guarantee of lenders to the GSE's interacted with housing policy to increase housing prices. This in turn, Roberts argues, helped create the subprime market, created mainly by private investors. The episode closes with some of Roberts's doubts about his narrative.

Size: 41.4 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Taleb on Black Swans, Fragility, and Mistakes

EconTalk Episode with Nassim Taleb
Hosted by Russ Roberts

Nassim Taleb, author of The Black Swan and Fooled by Randomness, talks with EconTalk host Russ Roberts about his latest thoughts on robustness, fragility, debt, insurance, uncertainty, exercise, moral hazard, knowledge, and the challenges of fame and fortune.

Size: 30.7 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Ritholtz on Bailouts, the Fed, and the Crisis

EconTalk Episode with Barry Ritholtz
Hosted by Russ Roberts

Barry Ritholtz, author of Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy, talks with EconTalk host Russ Roberts about the history of bailouts in recent times, beginning with Lockheed and Chrysler in the 1970s and continuing through the current financial crisis. In addition to the government role in aiding ailing companies, Ritholtz also looks at the role of the Fed in discouraging prudence through its efforts to keep asset prices and the stock market at high levels. The conversation closes with a discussion of what Ritholtz has learned from the crisis.

Size: 33.8 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Munger on Many Things

EconTalk Episode with Mike Munger
Hosted by Russ Roberts

Mike Munger of Duke University talks with EconTalk host Russ Roberts about many things. Listeners sent in questions for Mike and Russ to talk about and they chose ten of the most interesting questions with the idea of talking about each for six minutes. The topics are the scarcity of clean water, asset bubbles, the role of Fannie and Freddie in the financial crisis, can a business pass a tax on to its customers (or maybe even its workers), compassionate food, the study of economics, how to choose a college, the nature of cooperation in a modern economy, the humanity of non-profits, and the American Dream.

Size: 33.3 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Hamilton on Debt, Default, and Oil

EconTalk Episode with James Hamilton
Hosted by Russ Roberts

James Hamilton of the University of California, San Diego, and blogger at EconBrowser talks with EconTalk host Russ Roberts about the rising levels of the national debt and the growing Federal budget deficit. What is the possibility of an actual default, or an implicit default where the government prints money to meet its obligations and causes inflation? What might signal an impending default? And what is the long-range forecast for the U.S. government's obligations? Later in the conversation, the subject turns to oil prices, an area of Hamilton's research. Hamilton explores the causes of the increasing price of oil over the last decade and the implications for the economy.

Size: 30.7 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Posner on the Financial Crisis

EconTalk Episode with Richard Posner
Hosted by Russ Roberts

Richard Posner, federal judge and prolific author, discusses the financial crisis with EconTalk host Russ Roberts. Posner (despite the title of his recent book on the crisis, A Failure of Capitalism) places most of the blame for the crisis on the Federal Reserve, inattentive regulators and the subsidization of risk. He also criticizes economists for complacency in the face of impending disaster. A recent convert of sorts to Keynesianism, Posner confesses some disillusion with the implementation of the stimulus plan and the expanding role of the Federal government.

Size: 29.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Sumner on Monetary Policy

EconTalk Episode with Scott Sumner
Hosted by Russ Roberts

Scott Sumner of Bentley University and the blog The Money Illusion talks with host Russ Roberts about monetary policy and the state of the economy. Sumner argues that tight money in late 2008 precipitated the recession. He argues that the standard measures of monetary policy--growth in reserves or the Federal Funds rate--are misleading. Sumner suggests focusing instead on nominal GDP. He argues that the failure of the Fed to counter the drop in nominal GDP in late 2008 intensified the recession and points to the growth in unemployment. Along the way he discusses the Taylor Rule and other monetary prescriptions.

Size: 31.7 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Calomiris on the Financial Crisis

EconTalk Episode with Charles Calomiris
Hosted by Russ Roberts

Charles Calomiris of Columbia Business School talks with EconTalk host Russ Roberts about the financial crisis. Calomiris argues that it is important to put the crisis in historical perspective in the context of other bank crises. He argues that bank crises differ widely across time and place--some times and some places are placid, others are prone to regular crises. Calomiris argues that frequent episodes of failure are tied to government guarantees such as various forms of deposit insurance or similar incentives for risk-taking. Looking at the current crisis, Calomiris indicts "too big to fail," the government's reliance on ratings agencies as a measure of risk, and poor corporate governance as the key causes.

Size: 40.5 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Gary Stern on Too Big to Fail

EconTalk Episode with Gary Stern
Hosted by Russ Roberts

Gary Stern, former President of the Minneapolis Federal Reserve Bank, talks with EconTalk host Russ Roberts about Stern's book, Too Big To Fail (co-authored with Ron Feldman), a prescient warning of the moral hazard created when government rescues creditors of financial institutions from the consequences of bankruptcy. Stern traces the origins of "too big to fail" to the rescue of Continental Illinois in 1984 and then follows more recent rescues including those of the current crisis. The conversation explores the incentive effects of such rescues on the decision-making by executives in large financial institutions. The discussion concludes with Stern's ideas for alternative ways to deal with large, troubled financial institutions.

Size: 30.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Cohan on the Life and Death of Bear Stearns

EconTalk Episode with William Cohan
Hosted by Russ Roberts

William Cohan, author of House of Cards: A Tale of Hubris and Wretched Excess on Wall Steet, talks with EconTalk host Russ Roberts about the life and death of Bear Stearns. The discussion starts with how Bear Stearns and other Wall Street firms made money and how they financed their operations. The conversation then turns to the collapse of Bear Stearns's hedge funds in the summer of 2007 and how that collapse and the firm's investments in subprime mortgages led to the death of the firm in March of 2008. Cohan explains the role of borrowed money in the financial crisis and Bear Stearns in particular. The conversation concludes with the incentives facing Wall Street executives and the price they paid or didn't pay for the gambles they made with other people's money.

Size: 29.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

John Taylor on the Financial Crisis

EconTalk Episode with John Taylor
Hosted by Russ Roberts

John Taylor of Stanford University talks with EconTalk host Russ Roberts about the fundamental causes of the financial crisis of 2008. Taylor argues that the housing bubble of the early 2000s was caused by excessively loose monetary policy, in particular, a sustained period of excessively low interest rates pursued by the Federal Reserve. Other topics covered include rules vs. discretion in monetary policy and the risks of inflation in the coming months. The conversation concludes with a discussion of the impact of the current crisis on future monetary policy and the field of macroeconomics.

Size: 26.4 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Rebonato on Risk Management and the Crisis

EconTalk Episode with Riccardo Rebonato
Hosted by Russ Roberts

Riccardo Rebonato of the Royal Bank of Scotland and author of Plight of the Fortune Tellers talks with EconTalk host Russ Roberts about the challenges of measuring risk and making decisions and creating regulation in the face of risk and uncertainty. Rebonato's book, written before the crisis, argues that risk managers often overestimate the reliability of the measures they use to assess risk. In this conversation, Rebonato applies these ideas to the crisis and to the challenges of designing effective regulation.

Size: 28.6 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Taleb on the Financial Crisis

EconTalk Episode with Nassim Taleb
Hosted by Russ Roberts

Nassim Taleb talks about the financial crisis, how we misunderstand rare events, the fragility of the banking system, the moral hazard of government bailouts, the unprecedented nature of really, really bad events, the contribution of human psychology to misinterpreting probability and the dangers of hubris. The conversation closes with a discussion of religion and probability.

Size: 25.9 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Meltzer on Inflation

EconTalk Episode with Allan Meltzer
Hosted by Russ Roberts

Allan Meltzer, of Carnegie Mellon University, talks with EconTalk host Russ Roberts about the current state of monetary policy and the potential for inflation. Meltzer explains why inflation hasn't happened yet, despite massive increases in reserves created by Fed policy. Then he explains why inflation is coming and why it will be politically difficult for the Fed to stop it. Meltzer also analyzes the Japanese experience in recent years and talks about why so many investment banks overreached and destroyed themselves.

Size: 29.2 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Acemoglu on the Financial Crisis

EconTalk Episode with Daron Acemoglu
Hosted by Russ Roberts

Daron Acemoglu, of MIT, talks with EconTalk host Russ Roberts about the financial crisis and the lessons that need to be learned from the crisis. He argues that economists overestimated the stability of self-interest and ignored the institutional context of financial decision-making. He makes the case for new regulation and worries that political decisions will neglect the importance of growth.

Size: 34.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Cochrane on the Financial Crisis

EconTalk Episode with John Cochrane
Hosted by Russ Roberts

John Cochrane, of the University of Chicago, talks with EconTalk host Russ Roberts about the financial crisis. He talks about the origins of the crisis, why the Troubled Assets Relief Program (TARP) was flawed from the beginning, why mark-to-market accounting isn't the cause of the problem, argues for letting banks fail, and makes the case against the large increases in government spending.

Size: 33.8 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Arnold Kling of EconLog talks with EconTalk host Russ Roberts about the role of credit default swaps and counterparty risks in the current financial mess. The conversation opens with the logistics of credit default swaps and counterparty risks and moves on to their role in the financial collapse. The conversation closes with a discussion of the political economy of pending financial regulation.

Size: 29.2 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Kling on Freddie and Fannie and the Recent History of the U.S. Housing Market

EconTalk Episode with Arnold Kling
Hosted by Russ Roberts

Arnold Kling of EconLog talks with host Russ Roberts about the economics of the housing market with a focus on the role of Fannie Mae and Freddie Mac. The conversation closes with a postscript on the current financial crisis.

Size: 44.5 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Shiller on Housing and Bubbles

EconTalk Episode with Robert Shiller
Hosted by Russ Roberts

Robert Shiller of Yale University talks with EconTalk host Russ Roberts about the current housing mess and related financial market problems. Shiller argues that the decade-long run up in housing prices was a bubble where speculative fervor outweighed any economic fundamentals. He also discusses the genesis of the Case-Shiller housing price index and his idea for how it might be used to reduce risk in the mortgage market.

Note: This podcast was recorded on September 5, 2008, days before Secretary of the Treasury Paulson put Fannie Mae and Freddie Mac into conservatorship. Upcoming in the next two weeks is a podcast with Arnold Kling focusing on the role of Fannie and Freddie and the mortgage market.

Size: 28.0 MB
Right-click or Option-click, and select "Save Link/Target As MP3.

MORE:


   

Return to top