However, even central bankers and policy makers turn out to be capable of learning, even across generations. The lessons of the 1930s appear to have been learnt. New mistakes are being made all over the place, especially as regards moral hazard, the too-big-to-fail problem and other incentives for excessive risk taking in the financial sector, but that won’t become a serious problem until the next bust following the next financial and asset market boom and bubble.
Willem Buiter is always fun to read, even when I disagree with (some of) his analysis.
