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Charles Kindleberger 1910-2003

Posted: Wed 18. May 2011, 13:17
by THE BOOK OF LIGHT
Charles Kindleberger 1910-2003

In recent decades, in which the economy became more and more of a special science,Kindleberger understood himself as a "literary" scientist.Where his colleagues rushed to models he preferred to leave his education and his vast experience.
As a military and employees of the U.S. financial and foreign ministry and the Federal Reserve Kindleberger was with pretty much all interesting plans and decisions in Europe during World War II and immediately thereafter involved-for example, as office manager for German and Austrian affairs in the U.S. State Department for the Marshall Plan .
Crises can result, so Kindleberger ,whenever through upheaval new markets or industries occur.The exploitation of these new possibilities often leads to an overstatement in the financial markets, which then must crash.Crisis collapse at some point are so a normal concomitant fact of doing business.
With the debt crisis in the developing world, however modern economists began to employ themselves with Kindleberger .Latestens after the stock market crash of 1987, 1197/98 of the Asian crisis and the bursting of the tech bubble was his experience in the field of stock market bubbles and crises ever more important.
This is in addition to growth and prosperity also just about the distribution of wealth.
A stable world economy does not develop on their own.It is a public good.
"So that a global economic system is stable in the long run, it requires a stabilizer, a hegemon." Charles Kindleberger

It needs a leadingnation.This leading nation should include the following tasks:
1.The maintain a relative stable market
2.The provision of stable credit
3.The stabilization of exchange rates
4.The coordination of monetary and fiscal policy
5.Overtaking the position as a lender of last resort and refuge in situations

Exchange Wisdom:
GREED EATS BRAIN


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