- Short video lecture by Tanweer Ali with transcript
- Guardian on the 2008 financial crisis– 3min video
- “Manias, Panics, and Crashes” by Charles P Kindleberger – audiobook
- Pdf version of the book above – read ch 1,2 on common causes of crises
- Anatomy of Bubbles and Crashes by Roche, stages of a crash
- How did economists get it so wrong? – NYT, Krugman on wrong theories
- What is Keynesian economics? – IMF
- Keen v Krugman – article
- The crisis of capitalism – Marxist view: crisis is built into capitalism
- A Marxist explanation of the crisis – socialistworker
Optional supplementary readings:
- ABC news explanation of the crisis – 11min
- Cityphobia by John Lanchester – doc file
- Levy Institute Working Paper: The Financial Instability Hypothesis by Hyman Minsky
Discussion questions:
Please take part in at least two of the following discussions. As well as posting yourself, you should also respond to other people’s posts – we recommend you post at least two replies:
1. Watch the video lecture, and the introductory video on the crisis, and read Cityphobia by John Lanchester. What do you think is the single main factor which led to the crisis that broke out in 2008? How can a ‘bubble’ lead to a crisis? Have you observed any other bubbles (or do you see a emerging bubble) in the economy where you live or anywhere else in the world?
2. You have now met with a number of new ideas. For example you should have a basic familiarity with Minsky’s instability hypothesis. And you have seen the debate that Steve Keen and Paul Krugman on the importance (or not) of debt. Why, in your opinion, did so many economists not see the crisis coming?
3. You have had an introduction to Marxist theories on financial crises. What policies would someone with Marxist views suggest in order to prevent the next crisis?
Assignment:
The first 2 chapters of Kindleberger, ‘Manias…’ book and other resources under this module show that a typical crisis unfolds according to a certain pattern and has predictable causes. What are this general pattern and causes? Explain in what ways a similar scenario played out in the most recent 2007/8 financial crises? What might be one policy that you would put in place in order to prevent the next financial crisis.
2-3 pages, or up to 750 words .