IDEAS home Printed from
   My bibliography  Save this article

Reflections on the Great Recession of 2008-09


  • Georges de Menil

    (Paris School of Economics, 48 Blvd. Jourdan, 75014, Paris, France.)


In the years that preceded the Great Recession of 2008-09, many financial institutions in the developed world engaged in practices that increased the risk of systemic failure in the markets. The economics profession itself, overly confident of its ability to engineer stability, encouraged financial actors to exceed the traditional dictates of caution. The financial crisis that ensued also revealed many fault lines. One of the most glaring was an absence of international coordination, which encouraged regulatory shopping. Dramatic actions taken by public authorities in the fall of 2008 avoided collapse, but left a legacy of increased moral hazard, to which the best long-term answer is radical structural reform. Asian emerging markets were, by and large, spared the worst of the storm. They should learn from the mistakes of their peers in the developed world, but not reject wholesale the benefits of free markets. (c) 2010 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Suggested Citation

  • Georges de Menil, 2010. "Reflections on the Great Recession of 2008-09," Asian Economic Papers, MIT Press, vol. 9(3), pages 162-173, Fall.
  • Handle: RePEc:tpr:asiaec:v:9:y:2010:i:3:p:162-173

    Download full text from publisher

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:9:y:2010:i:3:p:162-173. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ann Olson). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.