Franklin Allen on Past Crises
Episode Description
Credit Crisis Interview: 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.
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Episode highlights
- The Uncertainty of the CrisisProfessor Allen reflects on the current economic crisis and its unpredictable future.“It's too soon to tell how this crisis will play out.”0:58Jun 18, 2008
- Contagion in the Financial MarketsDiscussion on the spreading effects of the financial crisis and investor nervousness.“We're certainly seeing a kind of contagion that's spreading.”3:27Jun 18, 2008
- Fear in the MarketExploring how fear affects investor behavior during economic uncertainty.“This is a fear factor that prevents people from doing anything risky.”4:12Jun 18, 2008
- The Fed's ExperimentProfessor Allen analyzes the Federal Reserve's approach to rate cuts amid uncertainty.“The Federal Reserve is engaged in a very interesting experiment.”10:20Jun 18, 2008
- Inflation ConcernsA warning about the potential for inflation to spiral out of control.“If inflation gets embedded into people's expectations, it may take off again.”11:10Jun 18, 2008
Tension
65/ 100Some tension





