Posted: Aug 09, 2013
Keith Poole’s book -coauthored with Howard Rosenthal and Nolan McCarty- Political Bubbles explores policy biases that foster market behaviors leading to financial instability.
“As pundits debate the causes of the 2008 economic crisis, the authors contend that financial crises have inherently political dimensions. McCarty, Poole, and Rosenthal argue persuasively that political bubbles and market bubbles are highly similar, with policy biases contributing to and amplifying market behavior. . . . The authors provide an exhaustive review of structural problems that they believe impede effective government response to new catastrophic economic developments. Their arguments transcend the academic to include historical precedents and specifics on Wall Street machinations.”—Publishers Weekly