Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis
  • Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis
  • Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis

Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis

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by John B. Taylor
     
 

ISBN-10: 0817949712

ISBN-13: 9780817949716

Pub. Date: 02/26/2009

Publisher: Hoover Institution Press

Throughout history, financial crises have always been caused by excesses—frequently monetary excesses—which lead to a boom and an inevitable bust. In our current crisis it was a housing boom and bust that in turn led to financial turmoil in the United States and other countries. How did everything deteriorate so suddenly and dramatically? In Getting

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Overview

Throughout history, financial crises have always been caused by excesses—frequently monetary excesses—which lead to a boom and an inevitable bust. In our current crisis it was a housing boom and bust that in turn led to financial turmoil in the United States and other countries. How did everything deteriorate so suddenly and dramatically? In Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis, Hoover fellow and Stanford economist John B. Taylor offers empirical research to explain what caused the current financial crisis, what prolonged it, and what worsened it dramatically more than a year after it began. The author tells how unusually easy monetary policy helped set the crisis in motion, as interest rates at the Federal Reserve and several other central banks deviated from historical regularities. He explains monetary interaction with the subprime mortgage problem, showing how the use of these mortgages, especially the adjustable-rate variety, led to excessive risk taking. In the United States this was encouraged by government programs designed to promote home ownership, a worthwhile goal but overdone in retrospect. Looking ahead, the author suggests a set of principles to follow to prevent misguided actions and interventions in the future.

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Product Details

ISBN-13:
9780817949716
Publisher:
Hoover Institution Press
Publication date:
02/26/2009
Series:
Hoover Inst Press Publication
Edition description:
New
Pages:
92
Sales rank:
810,270
Product dimensions:
5.50(w) x 8.20(h) x 1.50(d)

Related Subjects

Table of Contents

List of Figures ix; Preface xi; Chapter 1 What Caused the Financial Crisis 1; Chapter 2 What Prolonged the Crisis 15; Chapter 3 Why the Crisis Worsened Dramatically, a Year after it Began 25; Chapter 4 What Went Right in the Two Decades before the Crisis 31; Chapter 5 Why a Black Swan Landed in the Money Market in August 2007 45; Epilogue 61; Frequently Asked Questions 65; References 77; Acknowledgments 81; About the Author 83; Index 87

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