Carnival of the Capitalists

Carnival of the Capitalists is up this week at Ashish's Niti.

I liked Brian Gongol's link to great human disasters that could have been averted by a better understanding of economics. I'd add the tsunami disaster to that list - follow market-oriented policies and end up like Thailand, or follow kleptocratic policies and end up like Indonesia or Sri Lanka.

Hey Brian: how about a list of potential disasters averted by quick use of a little economics. I'll start you out with 9/11 - our financial system did not collapse because the folks at the Federal Reserve knew this would cause a lot of people to want to shift towards more liquid assets, so they made sure a ton of cash was available for people who wanted it.

Comments

[Brian Gongol]

Brilliant. Consider it done, with more to follow as time permits.

[John Top]

Greenspan also quickly injected liquidity into the financial system right after the crash in 1987, which likely averted a larger market meltdown.