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Asset bubbles and credit growth precede financial crises.


In his memoir of the 2008 financial crisis, former U.S. Secretary of the Treasury Timothy Geithner wrote that such crises are like “earthquakes” they “cannot be reliably predicted, so they cannot be reliably prevented.” Former Federal Reserve chairman Ben Bernanke ’75 seemed to share that view when he said in a May 2016 talk that the Great Recession was triggered by “a twenty-first-century electronic panic by institutions…an old-fashioned run [on the banks] in new clothes.” And former U.S. Secretary of the Treasury Henry Paulson, M.B.A. ’70, said in a 2018 symposium at the Brookings Institution that such crises are “unpredictable in terms of cause, timing, or the severity when they hit.” But what if all these policymakers are wrong? ....

Samuel Hanson , Henry Paulson , Timothy Geithner , William Mcchesney Martin , Jeremy Stein , Robin Greenwood , Andrei Shleifer , Ben Bernanke , Harvard Business School , Copenhagen Business School , Brookings Institution , Treasury Timothy Geithner , Federal Reserve , Great Recession , Treasury Henry Paulson , Financial Crises , Copenhagen Business , சாமுவேல் ஹான்சன் , ஹென்றி பால்சன் , வில்லியம் ம்க்ச்செஸ்னேய் மார்டின் , ஜெர்மி ஸ்டீன் , ராபின் கிரீன்வுட் , ஹார்வர்ட் வணிக பள்ளி , கோபெந்ஹேகந் வணிக பள்ளி , ப்ரூக்கிங்ஸ் நிறுவனம் , கூட்டாட்சியின் இருப்பு ,