The talk was all about crises — both past and future — as some of the world’s leading economists gathered at a conference over the weekend.
While former Federal Reserve Chairman Ben Bernanke and University of California at Berkeley Professor Barry Eichengreen used presentations at a Nobel Symposium in Stockholm to address the implications and effects of past financial turbulence, others cast a wary eye on the next episode.
Carmen Reinhart and Kenneth Rogoff of Harvard University both cautioned against complacency, with the former warning that economists and officials may last year have gone “a little too overboard” in their belief in a synchronized global upswing. Former Reserve Bank of India Governor Raghuram Rajan called for tighter oversight over shadow banking, financial technology and emerging markets. There’s a tendency to under-regulate before a crisis and then overdo it in the aftermath, he said.
The warnings come as policymakers insist that a global low-inflation economic expansion is still intact despite some weakness to start 2018. At a separate conference in the Swedish capital late last week Fed Chair Jerome…