Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/54236
Authors: 
Wray, L. Randall
Year of Publication: 
2008
Series/Report no.: 
Public policy brief // Jerome Levy Economics Institute of Bard College 96
Abstract: 
Money manager capitalism - characterized by highly leveraged funds seeking maximum returns in an environment that systematically underprices risk - has resulted in a series of boom-and-bust cycles in equities, real estate, and commodities. Because subsequent cycles have been increasingly damaging to the broader economy, we are now at the point where we are experiencing the most severe financial crisis since the Great Depression. Hasty interventions (bailouts) by Congress, the Treasury, and the Federal Reserve are attempting to keep the financial industry solvent, in the belief that government inaction would result in a prolonged recession. In this new public policy brief, Senior Scholar L. Randall Wray shows how money manager capitalism (financialization) has destabilized one asset class after another. He concludes that policymakers must fundamentally change the structure of our economic system, break the cycle of booms and busts, and reduce the influence of managed money - as well as prevent the next speculative boom in yet another asset class.
ISBN: 
978-1-931493-80-2
Document Type: 
Research Report

Files in This Item:
File
Size
327.99 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.