Monthly Archives: August 2008

Serious Research Balances Economic Costs & Environmental Benefits of Climate Policy

Ten years ago this summer, President Clinton’s Council of Economic Advisers, of which I was a Member, responded to requests from the Congress, which was then under Republican control, to explain in analytical terms what would be the economic effects of the Kyoto Protocol on climate change that had just been negotiated among the members of the […] Continue reading

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Commercial Banks, River Banks, and Moral Hazard

Quite a few economists are worried about moral hazard in financial markets.   Vince Reinhart wrote a Wall Street Journal column rebuking his former bosses after the Bear Stearns intervention: “…the Federal Reserve’s action can only be viewed as rewarding bad behavior.”  Ken Rogoff recently wrote in a Financial Times column, “it is important to be tougher […] Continue reading

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