Alan Taylor,
a professor and Director of the Center for the Evolution of the Global
Economy at the University of California, Davis, has conducted, along
with Moritz Schularick, ground-breaking research on the history and role of credit,
partly funded by the Institute for New Economic Thinking.
He finds that
today’s advanced economies depend on private sector credit more than
anything we have ever seen before. His work and that of his colleagues
call into question the assumption that was commonplace before 2008, that
private credit flows are primarily forces for stability and
predictability in economies.
If current trends continue, Taylor
warns, our economic future could be very different from our recent past,
when financial crises were relatively rare. Crises could become more
commonplace, which will impact every stage of our financial lives, from
cradle to retirement.
Do we just fasten our seatbelts for a bumpy ride,
or is there a way to smooth the path ahead? Taylor discusses his
findings and thoughts about how to safeguard the financial system in the
interview that follows. This interview was conducted by Lynn Parramore,
Senior Research Analyst at the Institute for New Economic Thinking.
For the complete interview click here:: Why Your Financial Future Is In Danger
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