• 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 USn 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 intensen 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…

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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