Financial Crises Require Governments.

Some Think That By Preparing To Deal With Crises You Make Them More Likely. I Think The Wiser Judgment Is The Contrary. In This Area At Least, If You Want Peace Or Stability, It's Better To Prepare For War Or Instability

Looking Past The Immediate Crisis, A More Resilient System Must Be Built On Stronger And Better Designed Shock Absorbers, Both In The Major Institutions And In The Infrastructure Of The Financial System.

The Major Economic Policy Challenges Facing The Nation Today - Pick Your Favorites Among The Usual Suspects Of Low Public And Household Savings, Concerns About Educational Quality And Achievement, High And Rising Income Inequality, The Large Imbalances Between Our Social Insurance Commitments And Resources - Are Not About Monetary Policy.

The Recognition That Things That Are Not Sustainable Will Eventually Come To An End Does Not Give Us Much Of A Guide To Whether The Transition Will Be Calm Or Exciting.

The Choice Is Between Which Mistake Is Easier To Correct: Underdoing It Or Overdoing It.