Berlin

Di. 03.12.2013, 18:30 bis 20:00

Vortrag

Britain and the Financial Crisis

Willy-Brandt-Haus
Wilhelmstr. 140/Stresemannstr. 28
10963 Berlin
Berlin Brandenburg

Beschreibung:

British economic policymakers, in common with most around the world, were ill prepared for the financial crisis of 2007-08 and struggled to come to terms with the gravity of the problem. The Treasury, the Bank of England and the ruling politicians were convinced that reasonable success in controlling inflation, as measured by the Consumer Price Index, was enough to achieve financial stability. They largely ignored the threat to the system from rising asset prices and sang the praises of "light touch regulation."

However, after some initial nervousness, the Government of Gordon Brown rose to the occasion. Brown played a crucial role, nationally and internationally, in G 7 moves to recapitalize the banking system in the autumn of 2008. When Brown's government fell in the general election of 2010, the British economy was recovering in response to an appreciable monetary and fiscal stimulus. The new government under Prime Minister David Cameron and Chancellor George Osborne immediately reversed the thrust of economic policy, maintaining erroneously that Britain's problems were analogous to those of Greece. Finally, in recent months, there have at last been signs of recovery. But much time was wasted, and output and employment could have been a lot higher, a lot earlier, if policy had been more accommodative.

William Keegan is Senior Economics Commentator of the Observer, Britain's oldest Sunday newspaper, for which he has written a regular column since 1977. He is a graduate of Trinity College, Cambridge and worked for the Financial Times and the Bank of England before joining the Observer.

He is the author of many books, including Mrs Thatcher's Economic Experiment, Britain Without Oil, Mr Lawson's Gamble, The Spectre of Capitalism and The Prudence of Mr Gordon Brown. William Keegan was recently appointed Visiting Professor of Economics, Queen Mary, University of London.

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