Why A Book Written 150 Years Ago Provides The Best Remedy For Financial Crisis

Brad DeLong provides an abstract of his presentation on the financial crisis and his reasons for believing that a book written 150 years ago provides the best advice on how to deal with a recession triggered by financial crisis. He explains why the typical empirical and theoretical foundations of economics are less relevant and even stand in the way of the best solutions. He also argues that the transmission mechanisms of financial crisis on economic behavior are the same as they were 150 years ago.