Thread: Nobel Jean #Tirole gave a public lecture at UCL tonight: 10 years after the #financialcrisis where do we stand. Key points:
1)#Finance is good if used and regulated properly. We seem to be making the same mistakes of 10 years ago. #Subprimes are up again in US. 1/
1)#Finance is good if used and regulated properly. We seem to be making the same mistakes of 10 years ago. #Subprimes are up again in US. 1/
2) Its crazy for banks to hold a lot of their nation’s sovereign bonds. It creates a #doomloop. a bank fails>government needs more debt to bail it>brings down sovereign bond prices and more banks under stress> more public money needed. And yes he used Italy as an example.2/
3) #cryptocurrencies are a bubble. Fiat money and central banks have worked quite well in developed economies in the last 30 years. And with cryptocurrencies seignorage goes into private hands and not to the goverment.
3/
3/
4) #Europe needs to move from ex post solidarity (bailing out who fails) to ex ante solidarity. Like every federation we need automatic stabilizers. we also need more integration like a banking union, common energy market and fiscal policy.
4/
4/
5) #Brexit and nationalism are bad and #Economists above all need to stand against populism.
My Summary: if all goes well we are doomed! 5/5 End
My Summary: if all goes well we are doomed! 5/5 End
