Monday, 16 May 2011

ECONOMICS FOR REAL PEOPLE: Global Financial Crisis


Tomorrow evening our friends at the Auckland Uni Economics Group tackle a subject that should interest everyone: the Global Financial Crisis—an event of such so importance it’s already become capitalised. This, from their mail-out about tomorrow night:

At this Tuesday night’s meeting we will begin looking at what is often termed the global financial crisis. It is not surprising that the ‘bust’ resulted in many asking what caused the downturn. But …

  • … are the true culprits being identified and placed under the spotlight?
  • Or are innocent parties are being blamed?
  • Will stimulus, quantitative easing, bailouts and too-big-to-fail get us out of The Great Recession?
  • Or will they only make things worse?

These are crucial questions—for what is currently being decided will affect every single one of us for many years to come.

data=XCVihWRtq4WsaAaVG7VezksrTNzDcIEE_YWd04ht9zkDZSpIOEWoVOQcm6ijrNG-RJHfajJgcjB4DR3sumbBl1J9R-Uy_B7Qm4inb8sLook forward to seeing you soon.
U0A Economics Group

DATE: Tuesday 17 May
TIME: 6pm
ROOM: University of Auckland Business School,
Owen G Glenn Building, Room 219 (Level 2) [Map here]


  1. Financial crisis is generic. It will always happen with or without the Feds existence. It means that even if Gold Standard is brought back or the Feds is abolished tomorrow according to the wish of Ron Paul, crises will still take place in the future.

    The question is, how it can be minimized and I think that this is when Austrian Economics can come in. If Austrian economic thoughts are being implemented worldwide, then perhaps crises will be minimized, but don't dream it is going to eliminate crises completely because it is a wishful thinking. All complex systems (be it economics, biological, physical, etc,...) do undergo phase transition occasionally (ie, an abrupt change or a discontinuous jump) as physicists calls them. Either there is an external cause (exogenous) or an internal cause (endogenous).

    There were even crises in the last century even before the establishment of the Feds in 1913. That shows that crises will always take place in a complex system because it is intrinsic to it. It is simply the way it is.

  2. The following is also useful too.

    Bubble trouble


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