The Great Moderation Paradox
Greg explores the paradox of the Great Moderation, where preventing recessions and rescuing banks can inadvertently encourage people to take more risks. He discusses the actions taken by regulators and financial engineers that led to the migration of lending activity and the increase in risk appetite.In this clip
From this podcast
EconTalk
Greg Ip on Foolproof
Related Questions
How did the financial crisis happen as discussed in the episode Greg Ip on Foolproof and the clip Risk Redistribution?
Would preventing recessions encourage more risk-taking behavior among banks and investors as mentioned in the content?
What role did regulation play in the financial system's evolution over the years as discussed in the content?