As an economist, I am supposed to have something intelligent to say about the current financial crisis. To be honest, however, I haven’t got the foggiest idea what this all means. So I did what I always do when something related to banking arises: I knocked on the doors of my colleagues Doug Diamond and Anil Kashyap, and asked them for the answers.Diamond and Kashyap's response - lengthy but comprehensible - is on Levitt's blog.
Thursday, September 18, 2008
Ask An Economist
As an economist, I get asked about financial crises a lot. And I really don't know much more than the average informed citizen: my branch of economics is not concerned with firm-level finance. Stephen Levitt, of Freakonomic fame, sounds a similar note: