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Between Theory and Pragmatism

Author

Listed:
  • Bodo HERZOG

    (ESB Business School, GERMANY.)

Abstract

This paper is a review about the book ‘Stress Test: Reflections on Financial Crises’ by Timothy Geithner. The book mainly discusses the policy decisions and implications of T. Geithner during his job as New York FED president and US-Treasury secretary under president Obama. The book reveals some hidden information about the decision-making process in both institutions. But it lacks a scientific foundation in order to explain the financial crisis in more detail. Hence, I think the book is less convincing than recognized in public. No doubt, Geithner crisis response deserves appreciation especially the ‘Stress Test’. However, the overall book does not demonstrate that the response is sustainable in the long run and scientifically sound. Consequently, it is more a book on public policy and governance than economics.

Suggested Citation

  • Bodo HERZOG, 2015. "Between Theory and Pragmatism," Journal of Economics and Political Economy, KSP Journals, vol. 2(2), pages 331-335, June.
    • Handle: RePEc:ksp:journ1:v:2:y:2015:i:2:p:331-335
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    References listed on IDEAS

    as
    1. Martin Hellwig, 2009. "Systemic Risk in the Financial Sector: An Analysis of the Subprime-Mortgage Financial Crisis," De Economist, Springer, vol. 157(2), pages 129-207, June.
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    More about this item

    Keywords

    Financial Crisis; Regulation; Cause of Financial Bubbles.;
    All these keywords.

    JEL classification:

    • A30 - General Economics and Teaching - - Multisubject Collective Works - - - General
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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