Between Theory and Pragmatism

Bodo HERZOG

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.

Keywords. Financial Crisis, Regulation, Cause of Financial Bubbles.

JEL.A30, B31, E58, E61, G18, G38.


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References


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DOI: http://dx.doi.org/10.1453/jepe.v2i2.217

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