May 17, 2017
We’re learning who is going to be managing the next financial crisis. Yale School of Management raised $10 million “to expand the Yale Program on Financial Stability and launch the ‘Crisis-Response Project.’” The project’s goal is “to improve the quality of decision making by governments and central banks in financial crises.” The project’s advisory board is staffed with many of the same people who gave us the last crisis. Notables include Timothy Geithner, Ben Bernanke, and Hank Paulson. Also on the advisory board is Kenneth Rogoff who is writing prolifically on why government should ban cash. Rather than looking how central bank manipulation of the money supply distorts the business cycle, these people will be looking to use central banks to increase regulation of the markets. It won’t end well.