{"id":3519,"date":"2012-02-03T15:07:26","date_gmt":"2012-02-03T20:07:26","guid":{"rendered":"http:\/\/www.multiplier-effect.org\/?p=3519"},"modified":"2012-02-03T15:14:09","modified_gmt":"2012-02-03T20:14:09","slug":"how-to-delay-the-next-financial-meltdown","status":"publish","type":"post","link":"https:\/\/blogs.bard.edu\/multiplier-effect\/how-to-delay-the-next-financial-meltdown\/","title":{"rendered":"How to Delay the Next Financial Meltdown"},"content":{"rendered":"<p>Dimitri Papadimitriou and Randall Wray deliver a second installment of their joint assessment of the risks that a renewed global financial crisis might be triggered by events in Europe or the United States.\u00a0 In their latest one-pager they move past disputes over etiology and lay out their solutions for both sides of the pond:\u00a0 addressing the basic flaws in the setup of the European Monetary Union (&#8220;the EMU is like a United States without a Treasury or a fully functioning Federal Reserve&#8221;) and outlining how to place the US financial system and &#8220;real&#8221; economy on more solid foundations.<\/p>\n<p>Read the newest one-pager <a href=\"http:\/\/www.levyinstitute.org\/pubs\/op_24.pdf\">here<\/a>.<\/p>\n<p>Their <a href=\"http:\/\/www.levyinstitute.org\/pubs\/op_20.pdf\">first one-pager<\/a> focused on the reasons it is unhelpful to label the turbulence in Europe a &#8220;sovereign debt crisis.&#8221;\u00a0 This way of framing the situation obscures more than it enlightens.\u00a0 To recap:\u00a0 prior to the crisis only a couple of countries had debt ratios that significantly exceeded Maastricht limits.\u00a0 For most, the economic crisis was the <em>cause<\/em> of rising public debt ratios, rather than the other way round.\u00a0 What we really need to look at, Papadimitriou and Wray suggest, are private debt ratios and current account imbalances within the eurozone.\u00a0 And as for current public insolvency concerns, this has far more to do with the flaws in the institutional setup of the European Monetary Union than the particular size of a country&#8217;s debt ratio:\u00a0 countries that control their own currencies aren&#8217;t experiencing comparable difficulties.<\/p>\n<p>(For a more detailed investigation, Papadimitriou and Wray will be releasing a new public policy brief:\u00a0 &#8220;Fiddling in Euroland as the Global Meltdown Nears.&#8221;)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dimitri Papadimitriou and Randall Wray deliver a second installment of their joint assessment of the risks that a renewed global financial crisis might be triggered by events in Europe or the United States.\u00a0 In their latest one-pager they move past disputes over etiology and lay out their solutions for both sides of the pond:\u00a0 addressing [&hellip;]<\/p>\n","protected":false},"author":202,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,15,8,111],"tags":[123,31,1129,1134],"class_list":["post-3519","post","type-post","status-publish","format-standard","hentry","category-employment","category-eurozone-crisis","category-financial-crisis","category-financial-reform","tag-debt","tag-eurozone","tag-financial-crisis","tag-financial-reform"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/3519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/users\/202"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/comments?post=3519"}],"version-history":[{"count":24,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/3519\/revisions"}],"predecessor-version":[{"id":3556,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/3519\/revisions\/3556"}],"wp:attachment":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/media?parent=3519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/categories?post=3519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/tags?post=3519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}