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http://richmedia.lse.ac.uk/publicLecturesAndEvents/20100217_1800_jimmyStewartIsDead.mp3

97 mins long, but it's only audio so podcast away (or whatever the verb is!).

It's rather dry and Prof. Kotlikoff isn't the most engaging lecturer, but it has some good detail and examples within. The Q&A at the end are quite good too, with one guy "getting it" that you need to separate risk free savings (no counter party risk) with risk baring investments (which can produce returns - or interest); the FSA guy didn't seem to digest this point, with talk of negative returns on cash mutual funds (you would think they should get it! :lol:). The fact that Kotlikoff said he was getting a negative return after inflation* on his current account now seemed to escape him too! ;)

* Inflation would be easier to control, as all money would be narrow money, fed in directly by the central banks. Given that measuring CPI is essentially measuring the effects of increased broad money (+ any global price fluctuations), it is always going to be one step behind. Changing base rates is also an indirect way of effecting the quantity of broad money, which may or may not have the right result (too much credit or too much hoarding unbalances the economy). With the central banks being able to inject more narrow money directly into the money supply, effects would be felt immediately - it could even be targeted at mutual funds which are seen as struggling and need help (say, small business funds in a recession). If we are going to have moral hazard, we should at least let the greater economy benefit, rather than the banks getting first dibs!

One guy asked about it ending fractional reserve banking and Kotlikoff responded with how it would be easier to manage the total money in the economy, preventing the credit booms/busts like what was seen in the great depression (and recently, no?). Allowing the central banks to buy into mutual funds themselves (in case of crisis, it's an option, moral hazard considered), they can add more money to the supply, which would go directly to the previous holders of the funds. No hoarding by the banks to worry about, nor the chance of too much "broad" money being created and triggering a credit boom.

Mutual funds would be auctioned to find the going rates, based on their assessed risks and defined returns. No central bank interest rate would be required, with the market deciding them on a case by case basis.

Prof. Kotlikoff thought that the Volker solution didn't go far enough, but was a step in the right direction. He also thought that if the UK adopted it, the US would follow, then the rest of the world. There was a big list of supporters at the start too, including people from the IMF.

I like it a lot. It is a much more of a free market approach, but without some of the compromises of competing currencies (mutual funds are a sort of currency of their own, IMO). It appropriates risk better, gives more direct control to the central banks, stops the private banks fuelling credit cycles, helps to keep price stability/inflation under control and gets the tax payer off the hook.

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Sounds pretty dry. This looks much more interesting:

Financial Crises And Crisis Economics: Past, Present And Future

Speaker: Professor Nouriel Roubini.

This event was recorded on 18 May 2010.

As early as 2005 Roubini speculated that house prices would soon sink the economy, and in 2006 warned the IMF that the United States was likely to face a catastrophic housing bust resulting in deep recession. Back then he was nicknamed 'Dr Doom' by the New York Times. In hindsight, economists have called him a prophet.

Available as: mp3(36 MB; approx 79 minutes)

Edited by Little Professor

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Sounds pretty dry. This looks much more interesting:

Financial Crises And Crisis Economics: Past, Present And Future

Speaker: Professor Nouriel Roubini.

This event was recorded on 18 May 2010.

As early as 2005 Roubini speculated that house prices would soon sink the economy, and in 2006 warned the IMF that the United States was likely to face a catastrophic housing bust resulting in deep recession. Back then he was nicknamed 'Dr Doom' by the New York Times. In hindsight, economists have called him a prophet.

Available as: mp3(36 MB; approx 79 minutes)

Aye, there are some good podcasts there: http://www.lse.ac.uk/resources/podcasts/publicLecturesAndEvents.htm

I am listening to the Roubini one now.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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