Publications

Working Paper No. 681 | August 2011

Lessons We Should Have Learned from the Global Financial Crisis but Didn’t

This paper begins by recounting the causes and consequences of the global financial crisis (GFC). The triggering event, of course, was the unfolding of the subprime crisis; however, the paper argues that the financial system was already so fragile that just about anything could have caused the collapse. It then moves on to an assessment of the lessons we should have learned. Briefly, these include: (a) the GFC was not a liquidity crisis, (b) underwriting matters, (c) unregulated and unsupervised financial institutions naturally evolve into control frauds, and (d) the worst part is the cover-up of the crimes. The paper argues that we cannot resolve the crisis until we begin going after the fraud, and concludes by outlining an agenda for reform, along the lines suggested by the work of Hyman P. Minsky.

Related Publications


Publication Highlight

Public Policy Brief No. 143
Brazil Still in Troubled Waters
Author(s): Fernando J. Cardim de Carvalho
February 2017

Quick Search

Search in: