Ricardo Reis on the Macroeconomics of Financial Crises and the Recent Inflation Surge
Macro Musings with David Beckworth
00:00
The Misallocation of Capital in Europe
David Frum: There's a very large inflow of capital from the core to the periphery that doesn't lead to growth in the periphery. He asks, why did you see such a large flow coinciding with such a large stagnation or even declining productivity? Why is it that happened? And note that this is independent of whether there would have been a crash or what monetary policy was doing or not. That's I think where we try and explain.
Transcript
Play full episode
