Adumbration

The discussion expands on a paper critiquing the economics profession relative to the belief that monetary policy had "solved" the problem of the business cycle. Later parts of the discussion involves assessments of risk, false presumptions that one can eliminate risk, challenges in enforcing liability for people who take huge risks and lose (with examples at least as far back as Long Term Capital Management), and the key role of institutional elements that contribute to the smooth functioning of the market.  A side topic is the difference in feedback mechanisms present in economic and political realms.

The Financial Crisis (2/9/2009) - Daron Acemoglu, of MIT, talks about the financial crisis and the lessons that need to be learned from the crisis. He argues that economists overestimated the stability of self-interest and ignored the institutional context of financial decision-making. He makes the case for new regulation and worries that political decisions will neglect the importance of growth.