Ten Years After the Global Financial Crisis, the System Is Safer
Topics: Finance
Public Release Date: January 16, 2019
More than 10 years ago, Lehman Brothers collapsed, and the world witnessed one of the worst financial crises in global history. In the United States, the stock market plummeted, unemployment soared, and the economy was thrown into a recession. And many other countries faced a similar fate. Has the world learned its lesson? Some argue that the international framework for handling and responding to a future crisis is lacking. Beyond that, they argue, there is reduced market-making activity, less scope for reduced interest rates, and increased government spending and borrowing.
But others are more optimistic, arguing that the past decade was one of recovery and reform, with governments passing regulations to deal with failing institutions and creating oversight infrastructure that shored up the banks. And, they say, there are fewer sketchy loans on the books. Is the global financial system more resilient? Or are we ill-prepared for next time?
ARGUING YES:
Jason Furman: Fmr. Chairman, Council of Economic Advisers & Senior Fellow, Peterson Institute
Neel Kashkari: President, Federal Reserve Bank of Minneapolis & Fmr. Assistant Secretary, U.S. Treasury Department
ARGUING NO:
Kenneth Rogoff: American Economist & Professor, Harvard University
Gillian Tett: U.S. Managing Editor, Financial Times
MODERATOR-IN-CHIEF:
John Donvan: Emmy award-winning journalist