Lord Adair Turner, former Chairman UK Financial Services Authority, gave a public talk at Princeton University on October 2, 2013. The talk was sponsored by the Julis-Rabinowitz Center for Public Policy and Finance. Lord Turner argued that excessive leverage was at the heart of the financial crisis. Lord Turner maintains that prior to the crisis "we had modern macroeconomics and central bankers assuming that finance doesn't matter and we had regulators and modern finance theory essentially saying that finance and in its developments and in its increased intensity, which were quite dramatic before the crisis, was positively benign." Lord Turner gives a forceful presentation on the creation, benefits and dangers of credit, and the tendency of the financial system to overproduce credit leading to over-leverage and major crisis. Lord Turner argues that "the issue of the growth of leverage and the level of leverage are matters of primary macro economic importance."

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