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Tuesday, September 16, 2008

The Topsy-Turvy End of the Reaganite Era of Financial Deregulation: More on Our Current Financial System

Today's Topic

Busy on a couple of projects, prof bug has still found time today --- as over the previous days --- to bang out some bursting commentary on our current financial crisis.  Those who have been his posted analyses here on this topic for several days now should be well situated to follow up and comprehend his latest two commentaries, each left at a well-known libertarian site.

The Two Bugged-Out Sources 

The first is at Carpe Diem, run by Professor Mark Perry of the University of Michigan.  It's in response to Prof. Perry's quoted paragraphs from an op-ed left at the Wall Street Journal today (September 16, 2008).  Click here.

The second source is at the Marginal Revolution, a site run by Tyler Cowen, a professor of economics at George Mason University in Virginia . . . the new citadel of libertarian economics, many of whose economists find the University of Chicago economics school soft on the proper workings of free markets.  The Chicago school, you see --- even James Buchanan, who is at George Mason now at an advanced age and pioneered (along with three or four other economists) "public choice" theory, for which he won an economics Nobel prize a couple of decades ago --- admit that there might be market failures, only they are convinced government efforts to deal with the failures will usually fail to improve things and will likely worsen them.  The hard-nosed libertarians at George Mason rely instead on some dead Austrian economists in the early and middle decades of the 20th century . . . though not, strikingly, the one Austrian economist who is recognized as important in mainstream economics thought: Joseph Schumpeter, whose impressive work on the driving forces of economic growthin clustered bursts of revolutionary technologies even 50 to 60 years since the industrial revolution of the late 18th century, ended his distinguished work at Harvard in the 1930s and 1940s. 

Click here for that second buggy commentary on our current financial dislocations.

Please Note

Even if you're not a libertarian --- which prof bug is decidedly not --- you will find the posted comments of Professors Perry and Cowen very illuminating whether you agree with them or not.  A more middle-of-the-road economic site, Econbrowser is also very good, though it does require at least a background in intermediate-level undergrad economics.  Another middle-of-the-road site, no less highly recommended, is Economists View.  And the blogs at the Wall Street Journal, the Economist (and its articles), and the Financial Times are almost always illuminating and easy-to-follow.