The real engine of the business cycle
Wednesday, May 09, 2018
CHICAGO: Every major financial crisis leaves a unique footprint. Just as banking crises throughout the 19th and 20th centuries revealed the importance of financial-sector liquidity and lenders of last resort, the Great Depression underscored the necessity of counter-cyclical fiscal and monetary policies.
And, more recently, the 2008 financial crisis and subsequent Great Recession revealed the key drivers of credit-driven business cycles.
A young man suspected of breaking into a car was seized by residents, severely assaulted, and died in the hospital within an hour. We unreservedly condemn this mob justice. It is not a solution to crime, but a criminal offence that turns citizens into murderers.Residents are understandably angry about theft. The person who raised the alarm at 4am acted lawfully, and the neighbours who rushed to help showed community spirit. But what followed was...