Perry Mehrling: The New Lombard Street

The video features a professor discussing his book, 'The New Lombard Street,' which explores modern money markets and the role of the Federal Reserve during crises. Inspired by Walter Bagehot's work, the book connects institutional details with academic literature. The professor highlights the 2007-2009 financial crisis, emphasizing the need to understand liquidity and shadow banking. He critiques the economics profession for neglecting institutional details and calls for intellectual change. The discussion also covers historical perspectives, the British Banking School, and the need for updated regulatory frameworks.

What criticisms does the author have regarding the academic literature on monetary policy?

In what ways does the author suggest that modern economics has lagged behind real-world developments?

What is the significance of the term 'liquidity' in the context of the discussion?

How does the author propose to bridge the gap between theory and practice in economics?