In brief conclusion, the group of experts convened in Paris in June warns that the crisis is not over, that policies so far set in motion are not sufficient, and that the goals set by the authorities so far, which amount to a restoration of previous conditions, are neither desirable nor possible. It is time now to begin to take account of the irreversible characteristics of recent events, to chart a course of new construction instead of reconstruction, and to build the domestic and financial monetary institutions and safeguards necessary to make it possible to pursue that course.
Tuesday, August 25, 2009
James K. Galbraith On The Current Situation
James K. Galbraith has issued a white paper based on a meeting that occurred in Paris at the Mayer Foundation this past June. It is entitled "Financial and Monetary Issues as the Crisis Unfolds," and is available at either http://www.epsusa.org/projects/crisisworkinggroups/financeandbanking.htm or http://www.levy.org/vtype.aspx?doctype=9. It is about 9,000 words in total, and the report concludes as follows: