Economics Opens Up into Long-term Turmoil - Martin Wolf

The transcript discusses the current turmoil in the economics profession, highlighting differing views on whether changes are needed. It suggests that young economists have new opportunities to explore the causes of crises. Policymakers face challenges in addressing crises due to limited political capital. There is concern that the financial system may become more dangerous, with a lack of consensus on solutions and the potential for future crises.

What is the main reason some economists believe no changes are needed in their profession?

• They believe the profession is already perfect.

• They want to disavow their professional contributions.

• They think the crisis was caused by special events.

• They are influenced by younger economists.

What is a possible lesson from the current economic situation for macroeconomic management?

• Understanding the causes of crises is crucial.

• Macroeconomic management should focus on short-term solutions.

• Crises are always caused by external factors.

• Instability is not a concern for macroeconomic management.

What is a significant concern for policymakers according to the second section?

• They have too much political capital.

• They might not do enough to prevent future crises.

• They have reached a consensus on the solution.

• They are focusing too much on long-term changes.

Why might the financial system be more dangerous now, as discussed in the third section?

• There are more financial institutions than before.

• The government has stopped guaranteeing money.

• There is less freedom for financial institutions.

• Creditors are aware they will be saved by the government.

What is one potential outcome of the current financial system's structure?

• Increased competition among financial institutions.

• A more stable financial environment.

• A large cartel of fewer institutions.

• Less government intervention in financial markets.