In this episode of Econ Talk, host Russ Roberts welcomes guest Carmen Reinhardt, an economics professor at the University of Maryland. They discuss her book, 'This Time is Different', which analyzes financial crises throughout history. The goal of the project was to identify recurring patterns in a quantitative manner. Tune in to learn more!
Carmen Reinhart of the University of Maryland talks with EconTalk host Russ Roberts about the ideas in her book This Time is Different: Eight Centuries of Financial Folly (co-authored with Kenneth Rogoff). They discuss the role of capital inflows in financial crises, the challenges of learning the right lessons, and what is generally true about financial crises over time and place. Reinhart applies these observations to the current crisis, discusses the possibility of the U.S. defaulting on its sovereign debt, and discusses the possibility of financial reforms that might make a difference.