How we ended up there and how we got to where we are today, without having some basic.
ALAN M. TAYLORNon-trivial understanding of the financial sector, credit, and the banking system.
More Alan M. Taylor Quotes
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More financial instability will introduce more uncertainty all down the line.
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Absent significant regulatory or tax changes, and a sharp transition could be disruptive.
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It’s just very hard to teach a class of students about what has happened in the Global Financial Crisis.
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We may end up with a world based more on equity than debt, or more on market debt instruments than bank intermediation; but how and why we get there is a mystery.
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1000 percent or more of GDP, so that every economy starts to have financial systems that resemble recent cases like Switzerland, Ireland, Iceland, or Cyprus. That might be a very fragile world to live in.
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Then our economic future will be very different from our recent past.
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The basic aggregate measure of gearing or leverage is telling us that today’s advanced economies’ operating systems are more heavily dependent on private sector credit than anything we have ever seen before.
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Macroeconomic stability will be more elusive and that will affect all of our lives: from the risks many will face in childhood.
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We have never in human history seen a run-up in credit of the kind we have just witnessed in advanced economies since 1970.
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Since then they have occurred more often, and 2008 was the most damaging of them all to date.
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To the security of employment at working age, to the challenge of accumulating for retirement.
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Furthermore, this pattern is seen across all the advanced economies, and isn’t just a feature of some special subset (e.g. the Anglo-Saxons).
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A possibility is that we see more and more leverage, and credit-to-GDP ratios rise once more to even higher levels.
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Non-trivial understanding of the financial sector, credit, and the banking system.
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In the immediate postwar era, financial crises in advanced countries were rare events, and before 1970 did not happen at all.
ALAN M. TAYLOR