The Crisis of 2008: The Real Problem was Nominal
The IEA is delighted to invite you to hear Scott Sumner present on “The Crisis of 2008: The Real Problem was Nominal”.
The prevailing view of the crisis is that it was caused by reckless sub-prime lending. But Sumner, an American academic and renowned blogger(TheMoneyIllusion.com), posits a different theory.
He suggests the real culprit was the Fed. In 2008, it abandoned its decades-old policy of keeping nominal GDP growth around 5% a year. The subsequent sharp drop led to collapsing stocks, commodities and confidence – and the estimated damage to financial systems worldwide ballooned from half a trillion dollars to four trillion dollars.
If the Fed had stuck to its traditional policy, he argues, the second and more severe stage of the crisis need never have happened.
Please join us for this fascinating insight at 2 Lord North Street SW1P 3LB.
Sandwiches and refreshments will be served.
If you’d like to attend please RSVP to Glynn Brailsford .