Scott Sumner is Professor of Economics at Bentley University. His research interests include the role of the gold standard in the Great Depression, liquidity traps, the use of market expectations in guiding monetary policy, and the history of macroeconomics. He blogs at the Money Illusion. Kevin Dowd is Emeritus Professor of Finance at Nottingham University and a Senior Fellow at the Cobden Center. His research interests are in risk management, free banking and financial regulation, macro and monetary economics, and political economy.
They discuss the causes of the recent financial crisis, and whether it was a failure of short-term monetary policy or an exposure of more fundamental flaws in modern economic theory. Martin Cox chairs the discussion.