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  • Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Getting it Wrong: How Faulty Monetary Statistics Undermine the Fed, the Financial System, and the Economy

Getting it Wrong: How Faulty Monetary Statistics Undermine the Fed, the Financial System, and the Economy

Serletis, Apostolos
Barnett, William A.

Paperback

EconomicsInvesting & FinanceGeneral Political Science

ISBN10: 0262516888
ISBN13: 9780262516884
Publisher: MIT Press
Published: Dec 16 2011
Pages: 360
Weight: 1.08
Height: 0.77 Width: 6.11 Depth: 8.94
Language: English
Awards: PROSE
A leading economist contends that the recent financial crisis was caused not by the failure of mainstream economics but by corrupted monetary data constructed without reference to economics.

Blame for the recent financial crisis and subsequent recession has commonly been assigned to everyone from Wall Street firms to individual homeowners. It has been widely argued that the crisis and recession were caused by greed and the failure of mainstream economics. In Getting It Wrong, leading economist William Barnett argues instead that there was too little use of the relevant economics, especially from the literature on economic measurement. Barnett contends that as financial instruments became more complex, the simple-sum monetary aggregation formulas used by central banks, including the U.S. Federal Reserve, became obsolete. Instead, a major increase in public availability of best-practice data was needed. Households, firms, and governments, lacking the requisite information, incorrectly assessed systemic risk and significantly increased their leverage and risk-taking activities. Better financial data, Barnett argues, could have signaled the misperceptions and prevented the erroneous systemic-risk assessments.

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