Beyond Keynesianism

Beyond Keynesianism

- Speaker: Justin Yifu Lin, Senior Vice President, World Bank

- Date: June 23, 2009.

“At this stage of the crisis, solving the problems at hand would require much more than the restructuring of credit and financial markets. Before the crisis, excess liquidity contributed to the boom in the real sectors. With the existence of excess capacity and in the face of deflation, the financial sector cannot be stabilized because more assets will become toxic and more loans will become non-performing. If the excess capacities problem is not eliminated, the financial sector cannot be stabilized and the global recession will be deep and protracted..."