Question

Professor Warwick McKibbin (Australian National University) is a highly esteemed economist and policymaker who was directly involved in dealing with 2008 Global financial crisis as a member of the Reserve Bank of Australia Board (2001–11). Watch the video at https://youtu.be/ksWPSTNqFGM .
a. Summarise the interview in 3-5 sentences.
b. Write down one idea discussed in the interview that you found new or interesting, or that you disagree with, and briefly explain why.
c. Write down one question on the topic that you would like to ask Professor McKibbin if you had the opportunity

Answer 1

The video explicitly explains how the funds got diverted from Asian markets since 1999 to US and Europe led to skyrocketed prices of technology stocks and the dot com bust which was one of the biggest factors contributing the 2008 recession in USA.

The idea ezpressed by the Profwssor is interesting but conflicting as the 2008 Recession was largely due to absence of strict controls and loan sanctioning protocols which led to housing boom via financial instruments like collateral debt obligations. The crash in housing proces thus led to liquidity crisis and hence Recession.

The Professor should be asked to determine the impact on real GDP before 2008 and aftee the crisisan dhow pther macroeconomic numbers turned up in Recession.