The Joe Walker Podcast cover image

Back To The Future - Tyler Cowen

The Joe Walker Podcast

00:00

The Negative Shock of the Pandemic

Tyler: Historically, housing bubbles tend to lead to nasty balance sheet recessions. He says the one time negative shock they could deliver to the long run growth rate is just so bad. Should we focus on innovation and productivity or worry about cleaning up after if it does turn sour? Tyler: It's hard for central banks to know when it's a housing bubble or when it's just a reevaluation. But I do think the general point that you want your banks and other financial institutions to be well capitalized, so crises are not crises of solvency would go a long way toward limiting cyclicality.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app