Episode Information

WWL: Economics Roundtable
Where We Live - with John Dankosky
Aired:
09/14/2009
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In this episode:

How did economists get it so wrong on the financial crisis?

 

Episode Audio

49:02 minutes (23.54 MB)
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Today marks exactly one year since the collapse of Lehman Brothers and the beginning of a downward spiral into economic turmoil.  President Obama travels to Wall Street today and is expected to argue for expanded oversight of the financial industry—while simultaneously assuring people that the government’s outsized role in the banking, insurance, and auto industries is only temporary. The role the government should play in maintaining the health of a free-market economy is something economists have argued about for decades. Nobel Prize Winner Paul Krugman has marked this anniversary with a critique of the economists who “got it all wrong ” in the months leading up to Lehman’s collapse.

Indeed, the last half century of economic thought has been dominated by the general idea that people make rational decisions based on a market that pretty much always works as it should. So what happens now that this idea has been flipped on it's head?

Today we're joined by a panel of Connecticut economists in conversation about how to understand what we've seen in the last year, and what's next in economic thought. We'll be joined by Wesleyan's Gil Skillman, CBIA's Pete Gioia, and UConn's Fred Carstensen.


 
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