how government actions and interventions caused, prolonged, and worsened the financial crisis Taylor, John B. (John Brian) 1946- creator Hoover Institution Press text bibliography cau Stanford, Calif Hoover Institution Press c2009 2009 monographic eng

print

xii, 92 p. : col. ill. ; 21 cm. Throughout history, financial crises have always been caused by excesses--frequently monetary excesses--which lead to a boom and an inevitable bust. In our current crisis it was a housing boom and bust that in turn led to financial turmoil in the United States and other countries. How did everything deteriorate so suddenly and dramatically? In Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis, Hoover fellow and Stanford economist John B. Taylor offers empirical research to explain what caused the current financial crisis, what prolonged it, and what worsened it dramatically more than a year after it began. The author tells how unusually easy monetary policy helped set the crisis in motion, as interest rates at the Federal Reserve and several other central banks deviated from historical regularities. He explains monetary interaction with the subprime mortgage problem, showing how the use of these mortgages, especially the adjustable-rate variety, led to excessive risk taking. In the United States this was encouraged by government programs designed to promote home ownership, a worthwhile goal but overdone in retrospect. Looking ahead, the author suggests a set of principles to follow to prevent misguided actions and interventions in the future. What caused the financial crisis -- What prolonged the crisis -- Why the crisis worsened dramatically a year after it began -- What went right in the two decades before the crisis -- Why a black swan landed in the money market in August 2007. by John B. Taylor. Includes bibliographical references (p. [77]-79) and index. n-us--- Financial crises Financial crises United States Monetary policy Mortgages Government policy Crisis financiera Estados Unidos Crisis financiera global, 2008-2009 Política gubernamental Política monetaria Hipotecas HB 3722 T243g 2009 330.973 9780817949716 (hbk. : alk. paper) 0817949712 (hbk. : alk. paper) 2009003410 DLC 090203 20230411090746.0 15609123