Twice today people have recommended that I read Charles P. Kindleberger's book Manias, Panics, and Crashes: A History of Financial Crises
Anyway, one of my personal recommenders said that he had reread the last couple of chapters, which deal with government intervention in relief of crashes, over the weekend. The good news is that governments are apparently doing this time what they have always done in this situation. Assuming, of course, that "this situation" is not fundamentally different from its precedents.
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So far, however, they are not -- as I understand it -- engaging in the protectionism that is thought to have exacerbated the problems in the 30s.
ReplyDeleteAnd it seems that markets are taking some comfort from G-7 coordination.