Franklin Allen on Past Crises

Brief Summary

Wharton Professor Franklin Allen discusses the subprime crisis, its parallels to Japan's past, and global economic implications.

Key points

• The Uncertainty of the Crisis. Professor Allen reflects on the current economic crisis and its unpredictable future.
• Contagion in the Financial Markets. Discussion on the spreading effects of the financial crisis and investor nervousness.
• Fear in the Market. Exploring how fear affects investor behavior during economic uncertainty.
• The Fed's Experiment. Professor Allen analyzes the Federal Reserve's approach to rate cuts amid uncertainty.
• Inflation Concerns. A warning about the potential for inflation to spiral out of control.