I still haven’t whittled that blog post down to size. In fact it’s now bigger. Meantime here’s another something on the web: a TLS essay I wrote on Martin Wolf’s The Shifts and the Shocks. There’s no paywall. Here’s a snippet, which provides the piece its rather nice illustration:
In the 2011 film Margin Call, which dramatizes the onset of our dismal era, the banker character played by Jeremy Irons delivers a monologue with which he attempts to justify his ruthless self-interest. Events like this just happen, he says. He lists a series of dates corresponding to financial panics, the modern part of which runs like this: “1819, 1837, 1857, 1884, 1901, 1907, 1929, 1937” – and then Irons pauses slightly before continuing – “1974, 1987 . . . .”. It is a slight pause, but there is room in it: room for, after the war, what the French call les trente glorieuses, the decades of widespread economic growth and prosperity. That gap in the string of crises undermines the Irons character’s argument: the disasters do not have to happen. During the period in that pause, banking was tightly regulated, capital movements were controlled, exchange rates pegged (if adjustable). As Wolf says, “finance was repressed. That certainly prevented crises”.
In the print edition the essay is called “Missing dates,” which I actually like a bit better, and which derives from this section.