Marius Gustavson, project manager at Civita where he conducts research on monetary policy, has written a report, “The Financial Crisis: Market Failure or Government Failure,” for this Norwegian free-market think tank . Citing both domestic and global factors as contributing to what he calls the greatest financial crisis since the Great Depression, he finds that government failure is at the root of it all, especially in the areas of US monetary policy, housing policy, and other interventions in US financial markets such as the record low interest rates that spawned credit and housing bubbles. What is interesting about the report is the global angle of the crisis, connecting domestic failures with global economic imbalances.
Written originally in Norwegian, Marius is currently in the process of translating the report into English. As a preview, here is a preliminary draft of the English version of his chapter on monetary policy.
Marius Gustavson is currently in Washington DC, visiting Atlas, in order to conduct further research and finish his master thesis at the University of Oslo on the housing crisis and the U.S. mortgage market.
All this is our way of reminding students, faculty, and other interested parties based in the US about Atlas’s Sound Money Essay Contest, which has a deadline of November 24th, 2009. Details are available here. Submit your essays today!
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