The Goldilocks Economy and Three Bads
Lecture no. 85 from the course: Crashes and Crises: Lessons from a History of Financial Disasters
Taught by Professor Connel Fullenkamp | 08 min | Categories: The Great Courses Plus Online Economics & Finance Courses
In the 1990s and early 2000s, the U.S. economy was enjoying a long spell of economic growth that struck economists as just right. But that was before the “three bads” surfaced: bad monetary policy, bad private-sector behavior, and bad financial regulations. See how self-interest and overconfidence blinded investors, borrowers, and regulators to the financial crisis that exploded in 2007–2008.