Sudip Bandyopadhyay’s Blog

Alan Greenspan, the former US Federal Reserve chairman, confessed that he had failed to anticipate the financial crisis and said “Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity (myself especially) are in a state of shocked disbelief.” Mr.Greenspan had faith that banks were prudent enough to make [...]

Financial crisis causes lot of damage, and ill-conceived post-crisis measures, no matter how well-intended, can only magnify their effects. Examples abound.  For instance, the Smoot-Hawley Tariff Act of 1930, a US law that erected trade barriers, is widely regarded as having added considerable strain to the world economy after the 1929 stock market crash.  However, [...]