Includes bibliographical references (p. -79) and index.
What caused the financial crisis
What prolonged the crisis
Why the crisis worsened dramatically a year after it began
What went right in the two decades before the crisis
Why a black swan landed in the money market in August 2007.
In this concise volume, leading economist John B. Taylor offers empirical research to explain what caused the current financial crisis, what prolonged it, and what dramatically worsened it more than a year after it began. The evidence he presents strongly suggests that specific government actions and interventions are largely to blame and that any future government interventions must be based on a clearly stated diagnosis of the problem and a rationale for the interventions. (source: Nielsen Book Data)