We’re still in the midst of this economic crisis, but the giant of an academic who is Richard Posner has already written a book and started a very detailed blog on the still very current developments. Check out his new blog. It’s definitely the most comprehensive analysis of the current economic crisis that’s been published to date. Here’s an excerpt on the topics he covers:
The anti-depression program as it has emerged–which incidentally exhibits considerable continuity with the Bush Administration’s program–is divisble as follows: (1) reducing interest rates and expanding the money supply (these are not quite the same thing), which can in turn be divided into (a) conventional Federal Reserve money-supply expansion and (b) “quantitative easing”; (2) bailing out (that is, recapitalizing with Treasury money) the banks; (3) mortgage relief; (4) keeping the Detroit automakers from liquidating; and (5) a “stimulus” package (that is, Keynesian deficit spending), which can in turn be divided into (a) tax relief, (b) expanded benefits (unemployment benefits, health benefits, food stamps, etc.), and (c) public works, such as construction of transportation infrastructure.
I don’t think I would be alone in saying that this work may forever solidify Posner’s title as the most prolific blogger in the history of the world!
