Project Description

Cover-Shift and the ShocksSubtitle: What We’ve Learned and Have Still to Learn From The Financial Crisis

By: Martin Wolf

Notes:

  • Germany had an incentive to not help their neighbors, because it meant they could get a lower currency and continue to make lots of money.
  • The EU differs from the US in that there are not automatic mechanizes for one state to help the others.
  • Unless an economy tried to work together it would have failed, because as one part of the economy tighten, the other would have loosened and cause more debt accumulation.
  • To deleverage the economy, he would eliminate the interest rate tax deduction.
    • Would also fix property taxes.
  • Advocates better corporate taxation and governance.
    • Eliminate corporate taxes so that they would give more money to shareholders.
  • Probably need a global central bank.
  • Global Imbalances happened, because the feds mission is to stop inflation and reach full employment, not to correct for financial bubbles.