This video is no longer available online.
Location: The Heritage Foundation's Lehrman Auditorium
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, Hoover Institution
Senior 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.
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
examines 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, Dr. Taylor suggests a set of
principles to follow to prevent misguided actions and interventions
in the future.
B. Taylor is the
Bowen H. and Janice Arthur McCoy Senior Fellow at the Hoover
Institution and the Mary and Robert Raymond Professor of Economics
at Stanford University. He has served as the Director of the
Stanford Institute for Economic Policy Research and was Founding
Director of Stanford's Introductory Economics Center. In
2007, he was awardeded the Adam Smith Award from the National
Association for Business Economics (NABE) for his work as a
groundbreaking researcher, public servant, and teacher during a
career of more than 30 years and his outstanding leadership in the
field of economics.
More About the Speakers
John B. Taylor, Ph.D.
Edwin J. Feulner, Ph.D.
Founder, Chairman of the Asian Studies Center, and Chung Ju-yung Fellow