The Financial Crisis of 2007-2009: Understanding Its Causes, Consequences—and Its Possible Cures

The Financial Crisis of 2007-2009: Understanding Its Causes, Consequences—and Its Possible Cures
J. Bradford DeLong
University of California at Berkeley and NBER

Pay less, get less: An economic assessment of post-2012 climate policy proposals

Pay less, get less: An economic assessment of post-2012 climate policy proposals
Valentina Bosetti Carlo Carraro Alessandra Sgobbi Massimo Tavoni
6 December 2008
Policymakers need to agree to the post-Kyoto climate architecture soon to implement it in 2012. Using a set of quantitative indicators, this column assesses a number of proposed international climate policy architectures and evaluates their economic efficiency, environmental effectiveness, distributional implications, and enforceability. Unfortunately, the most effective policies are the most costly and hardest to enforce.

The economic crisis, Doha completion, and protectionist pressure

The economic crisis, Doha completion, and protectionist pressure
Joseph Francois, 17 December 2008
The worry about protectionism should not be centred on completing the Doha Round. This column suggests 80% of world trade is locked-in under legally binding tariffs and the real worry is that of excessive use of antidumping, countervailing duty, and safeguard protection, misguided public subsidies, rising protection in the poorest countries, and temptation in the US Congress to violate existing treaty commitments.

A New Multilateral Trade Agenda

From Doha to the Next Bretton Woods
A New Multilateral Trade Agenda
Aaditya Mattoo and Arvind Subramanian
From Foreign Affairs, January/February 2009

Who Broke Global Finance, and Who Should Pay for It?

The Making of a Mess
Who Broke Global Finance, and Who Should Pay for It?
Harold James

From Foreign Affairs, January/February 2009

Project Syndicate - Has Global Stag-Deflation Arrived?

Has Global Stag-Deflation Arrived?
by Nouriel Roubini
"Given the severity of this economic and financial crisis, financial markets will not mend for a while. The downside risks to the prices of a wide variety of risky assets (equities, corporate bonds, commodities, housing, and emerging-market asset classes) will remain until there are true signs – towards the end of 2009 – that the global economy may recover in 2010."

Project Syndicate - Good News in Bad Times

Good News in Bad Times
by Jeffrey D. Sachs

"...these successes... share a similar pattern. They address a well-defined and serious challenge, for example low food production or a specific disease, and are based on a well-defined set of solutions, such as agricultural equipment and inputs needed by peasant farmers, or immunizations.

Small-scale demonstration projects prove how success can be achieved; the challenge then becomes taking the solutions “to scale” in nationwide or even worldwide programs. Leadership is needed, within the countries in need as well as among the rich nations that can help to launch and finance the solutions. Finally, modest amounts of money, directed at practical problem solving, can make an historic difference.

...we will lose the battle against poverty and misery only if we give up, and fail to heed the intelligence and goodwill that can be mobilized today. And perhaps next year, the United States will rejoin the global effort ...”

IMF Fiscal Policy for the Crisis

Here is the entire IMF report on "Fiscal Policy for the Crisis"

"The current crisis calls for two main sets of policy measures. First, measures to repair the  financial system. 

Second, measures to increase demand and restore confidence. 

While some of these measures overlap, the focus of this note is on the second set of policies, and more specifically, given the limited room for monetary policy, on fiscal policy.

The optimal fiscal package should be timely, large, lasting, diversified, contingent, collective, and sustainable: timely, because the need for action is immediate; large, because the current and expected decrease in private demand is exceptionally large; lasting because the downturn will last for some time; diversified because of the unusual degree of uncertainty associated with any single measure; contingent, because the need to reduce the perceived probability of another “Great Depression” requires a commitment to do more, if needed; collective, since each country that has fiscal space should contribute; and sustainable, so as not to lead to a debt explosion and adverse reactions of financial markets.  

Looking at the content of the fiscal package, in the current circumstances, spending increases, and targeted tax cuts and transfers, are likely to have the highest multipliers. General tax cuts or subsidies, either for consumers or for firms, are likely to have lower multipliers."

Post here, and comment on your classmates!

• Got something to say that's related to SIPA? 
  
• Link to it or post it here, on this Team Blog.
  
• Invite all of your classmates to join in.
• The blog name (SIPA EMPA) can easily change, just think of a better one. 
• You can post anonymously, or link to your profile.
  

How do I create a team blog?

• Team blogs are quite useful when small groups of people wish to contribute to a single blog. Basically, one person initially creates the blog, then adds other people to it as members.

• Team members can either be administrators or not. Administrators can edit all posts (not just their own), add and remove team members (and grant admin access), and modify the blog's settings and template. Non-admins can only create and edit their own posts.

Here's how to add members to your blog:

• First, go to Settings | Permissions:
• Then click Add Authors:
• Next, type the email addresses of the people you're inviting to the blog, separating each address with a comma. They'll receive an email with a confirmation link soon. Note that they must have Google Accounts, and if they don't already, they'll be prompted to create one.
• When you're ready to send the invitations, click Invite.