Are Financial Crisis a necessary evil?
5th February 2013: Prof Giancarlo Corsetti & Dr. Gabriel Palma
Financial crises have a way of wiping out uncompetitive businesses and reducing misallocations of labour. Crises also impose a level of prudence on investors even in good times, counteracting the human nature of greed. Yet with 50 million people made unemployed worldwide during 2008, the costs of Financial Crises are undeniably substantial. The costs also seem to fall
inequitably across households and companies. So, could we do without Financial Crises, or are they necessary evil?
Prof Giancarlo Corsetti is the Chair in Macroeconomics at the University of Cambridge. His research is heavily focused on fiscal policy and sovereign
risk. He also acts as a consultant to the ECB and the Bank of England. Dr Gabriel Palma, also from Cambridge economics department, is an expert on
Latin American economies. His research has included Third World debt, economic development and financial crises.
inequitably across households and companies. So, could we do without Financial Crises, or are they necessary evil?
Prof Giancarlo Corsetti is the Chair in Macroeconomics at the University of Cambridge. His research is heavily focused on fiscal policy and sovereign
risk. He also acts as a consultant to the ECB and the Bank of England. Dr Gabriel Palma, also from Cambridge economics department, is an expert on
Latin American economies. His research has included Third World debt, economic development and financial crises.
