At the LSE, a supergroup of economists considered what we can learn from the crisisby Jessica Abrahams / March 26, 2013 / Leave a comment
If there were such a thing as a supergroup of economists, this would be it. Ben Bernanke, chairman of the US Federal Reserve, Mervyn King, governor of the Bank of England, Larry Summers, former US secretary of the Treasury, Olivier Blanchard, chief economist of the International Monetary Fund, and Axel Weber, former head of the Bundesbank and now chair of UBS, gathered at the London School of Economics yesterday to discuss: “What should economists and policymakers learn from the financial crisis?” It’s an ambitious question and one that calls for Mervyn and the Monetarists to answer it.
King started out with a warning. “The crisis is far from over,” he said. “There will be many twists and turns before we can truly say that the crisis is over.” All the speakers were keen to stress how the situation in Cyprus shows we are not yet in the clear. “The rally in financial markets that we have seen has been a misleading signal,” Weber said. “Cyprus is a reminder that the eurozone economies have not been stabilised,” and the rally in sentiment was “too good to be true.”