President Obama and other world leaders are espousing a green economic stimulus package to combat recession and climate change. Justin Urquhart Stewart and guests discuss the opportunities and challenges.
One of the puzzles of the 2007/8 credit crunch is how a relatively small loss of capital in a tiny market segment was transformed into a global financial crisis costing close to $1 trillion and sending the world economy into slowdown.Key players in this tragedy are a set of legal and accounting principles that are well-meaning, but turn financial hiccups into liquidity black holes.
Paul Krugman, Nobel Prize-winning economist and opinion columnist for the New York Times, explains his support for an imperfect healthcare reform bill and his opposition to an imperfect stimulus package. He argues that while healthcare can be improved over time, the stimulus package needed to work at the outset to win future support.
The financial crisis has caused an economic crisis around the world. Drastic state measures have prevented the collapse of the economic system: governments have established rescue funds for failing banks or nationalized banks for relaunching economic growth. At the same time, central banks have intervened with important injections of liquidity and have lowered interest rates. Jospeph Stiglitz explains why this is the right way to go.