The causes of the present crisis are largely to be found in the unregulated development of new financial products and in the over-expansion of the financial sector, in particular the shadow banking sector, which emerged precisely to avoid regulation. These changes led to lower risk perception,...

This paper considers the effects of globalization on economic insecurity. It argues that the heightened economic insecurity calls not only for greater oversight of finance, but a rebuilding of domestic labor market protections.

Given that financial markets operate as a Keynesian beauty contest and the real economy has no automatic tendency to converge to full-employment growth, then the simple rules of the game embodied in the policy positions believed by market participants to be held by other market participants will...

A principal message of this paper is that external financial crises are not caused by an alert private sector pouncing upon the public sector’s foolish actions such as running an unsustainable fiscal deficit or creating moral hazards. They are better described as private sectors (both domestic...