Tuesday, December 14, 2010

An Alternative View On Summers' Legacy from an Economist


This article does a nice job of describing Summers' view on the roles of markets and government in the economy. It is not critical of his role in the Obama administration where he has been a proponent of government spending to compensate for the fall in private spending. The criticism is focused on Summers' willingness to use government to rescue financial markets when they misfire. Summers' believed that this would encourage financial innovation and more risk taking. This attitude may have paved the way for our financial crisis.

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