Odd Lots Tim Geithner on How to Fight the Next Financial Crisis
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Apr 3, 2025 
Tim Geithner, former US Treasury Secretary and New York Fed head, shares insights on preventing future financial crises. He discusses lessons from the 2008 crash and emphasizes the importance of institutional memory for forthcoming policymakers. Geithner highlights systemic vulnerabilities and the need for balanced interventions during economic turmoil. With his role at Yale's New Bagehot Project, he aims to prepare the next generation to tackle emerging financial risks head-on, reflecting on what could have been done differently in past crises.
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Crises of Belief and Memory
- Financial crises are crises of belief and memory, often leading to forgetting past lessons.
- This forgetfulness, coupled with long periods of stability, breeds instability and new crises.
Bridging the Knowledge Gap
- Policy practice often lags behind theoretical knowledge in financial crises.
- This gap is partly due to faded memories of past crises and beliefs that hinder effective responses.
The Doomsday Book
- When Geithner joined the New York Fed, the "Doomsday Book" of past crisis responses was thin.
- This highlighted the lack of experience with systemic crises between the Great Depression and 2007.