00:01    |    
Initial credits
00:20    |    
Introduction
00:36    |    
Credit cycle theorists
01:31    |    
Austrian theory of the business cycle
Trade-off between consumption and investment
Investment demand
Equilibrium interest rate
Time and production
Stages of production
Sustainable growth from additional savings
Unsustainable growth from credit expansion
Artificially cheap credit
False boom
13:57    |    
Real estate crisis
Excess money creation by the Federal Reserve (FED)
M2 growth
M1 growth
Real interest rates
FED policies versus the Taylor rule
Target interest rates
Credit into real estate
Mild inflation in consumer prices
Asset prices
Mandates and subsidies to write risky mortgages
Federal Housing Authority (FHA)
Community Reinvestment Act (CRA)
U.S. Department of Housing and Urban Development (HUD)
Fannie Mae and Freddie Mac Moral hazard
32:38    |    
FED's bailout programs
Capital injection into banks
Treasury bills
FED assets
Mutual funds
Asset-Backed Commercial Paper Money Market Mutual Fund (ABCP MMMF)
FED's balance sheet
Securities brokers
Mutual funds
Insurance companies
Long-term loans to banks
Central bank liquidity swaps
FED's total balance sheet
Intervention by the Federal Reserve
FED's liabilities
Monetary base velocity growth
Aggregate spending
46:47    |    
Federal Reserve policy
Interests on reserves
Monetary base expansion
European Central Bank
Concern for avoiding deflation
49:43    |    
Question and answer period
There are a lot of explanations for the current financial crisis. Were the Federal Reserve, the Glass-Steagall Act, credit-rating agencies, or US bank-oriented bailouts to blame for the crisis?
Global savings glut
Glass-Steagall Act
Rating agencies
FED's bailouts
Is the monetary theory the correct solution for this crisis?
Can you comment on inflated financial assets and innovative financial instruments and their relation to FED policy?
Why do you think the United States government did not intervene in the Lehman Brothers collapse? And did that decision bring about the more intense government intervention that followed?
Why is there so much resistance to the gold standard?
Will the FED return to its more traditional policy instruments?
01:17:54    |    
Final credits



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The International Financial Crisis

24 de junio de 2009   | Vistas: 28 |  

Lawrence H. White's analysis of the current financial crisis focuses on the real estate credit market in the United States. He describes how at the beginning of the problem, financial institutions acted irresponsibly; seeking ever greater income without regard for how their actions would affect the entire world's financial system.  He describes the United States government's intervention in the crisis, through the Federal Reserve System, that was designed to bailout critically affected financial institutions, especially banks.  Through semiprivate entities, the Federal Reserve attempted to absorb the damage that had been created, but arguably as they saved the banks, they continued to feed the fire of this crisis that had been growing since 2001.

Versión en español La crisis financiera internacional




Lawrence H. White is an expert in banking and monetary policy. He is professor of economics at George Mason University…

IDEAS DE LA LIBERTAD

Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín