Summary of An Economist Explains What Happens If There’s Another Financial Crisis

Looking for the article?
We have the summary! Get the key insights in just 5 minutes.

An Economist Explains What Happens If There’s Another Financial Crisis summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Eye Opening
  • Hot Topic
  • Insider's Take

Recommendation

Amid a return to growth many years after the 2008 financial crisis, the IMF and other institutions are now raising the alarm that reforms deployed in the crisis aftermath won’t be adequate to address another cycle of crash and burn. In this informative interview with the World Economic Forum’s Ross Chainey, noted economist Kenneth Rogoff expresses concern that nations lack the tools to confront a new crisis, and that inequality, technology and climate change will make enormous impacts on future generations. This sobering but ultimately hopeful article will engage executives, economists and policy analysts.

About the Authors

Kenneth Rogoff is a Nobel Prize recipient and professor of public policy and economics at Harvard University. Ross Chainey is a digital media specialist with the World Economic Forum.

 

Summary

The 2008 financial crisis began with a problem in US banks, but it triggered a chain reaction that led to the worst worldwide recession since the 1930s. By 2009, output had shrunk to a fraction of what it was in 2008, and it was the first time global GDP dropped. The global economy grew $10 trillion less than it would have, had the crisis never happened, according to estimates. Government leaders and central bankers went into triage mode and avoided a catastrophic meltdown by rescuing large banks, using quantitative easing to inject money into the financial...


More on this topic

Customers who read this summary also read

The American Economy
7
Why Is the Fed’s Balance Sheet Still So Big?
8
The Financial Crisis and the Free Market Cure
7
The Global Competitiveness Report 2019
9
An Old Tool to Fight a New Recession
9
Between Debt and the Devil
9

Related Channels

Comment on this summary