Intelligence Squared When is the Next Great Financial Crash Coming?
Jun 14, 2023
Join economist Linda Yueh, author of "The Great Crashes," and Jesse Norman, UK Minister and author, as they explore the lessons from past financial crises. They discuss the unpredictability of future downturns and the impact of globalization on markets. Yueh warns about emerging risks in China and advocates for principle-based approaches to crisis management. The duo highlights the intricate dance between economic cycles, human behavior, and effective regulatory measures to maintain stability in turbulent times.
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Types of Financial Crises
- Financial crises have various forms, like stock market or housing crashes.
- The worst crises involve banks and often combine multiple types, leading to recessions and societal misery.
The Great Crashes Book
- Linda Yueh's book "The Great Crashes" chronologically follows John Kenneth Galbraith's "The Great Crash 1929".
- Yueh analyzes crashes over the past century, identifying common patterns like euphoria, crisis resolution, and aftermath.
Currency Crises
- The internationalization of financial markets increased the speed of crises.
- Speculator attacks on currencies are driven by doubts about exchange rate credibility.
