34 min listen
Gary Stern on Too Big to Fail
FromEconTalk
ratings:
Length:
67 minutes
Released:
Oct 5, 2009
Format:
Podcast episode
Description
Gary Stern, former President of the Minneapolis Federal Reserve Bank, talks with EconTalk host Russ Roberts about Stern's book, Too Big To Fail (co-authored with Ron Feldman), a prescient warning of the moral hazard created when government rescues creditors of financial institutions from the consequences of bankruptcy. Stern traces the origins of "too big to fail" to the rescue of Continental Illinois in 1984 and then follows more recent rescues including those of the current crisis. The conversation explores the incentive effects of such rescues on the decision-making by executives in large financial institutions. The discussion concludes with Stern's ideas for alternative ways to deal with large, troubled financial institutions.
Released:
Oct 5, 2009
Format:
Podcast episode
Titles in the series (100)
Making Schools Better: A Conversation with Rick Hanushek: Russ Roberts and Rick Hanushek, of Stanford University, talk about why the standard reforms such as more spending or better educated teachers have failed and what needs to be done in the future. by EconTalk