Acton Institute Powerblog Archives

Acton Occasional Series

The Great Recession and the failure of financial intermediaries.

Note: This is post #92 in a weekly video series on basic economics. What caused the Great Recession of 2008? In this video by Marginal Revolution University, economist Tyler Cowen discusses a couple of key reasons, including homeowners’ leverage, securitization, and the role of excess confidence and incentives. Continue Reading...

Why financial intermediaries fail

Note: This is post #91 in a weekly video series on basic economics. Financial intermediaries serve as a bridge between borrowers and savers. When those bridges collapse the effects can be disastrous: businesses go bankrupt, workers get laid off, and people lose their homes. Continue Reading...

What do bond markets do?

Note: This is post #90 in a weekly video series on basic economics. Most borrowers, such as individuals and small businesses, borrow through banks. But larger institutions can also borrow from a different financial intermediary: the bond market. Continue Reading...

The first axiom of Christian economics

Note: This article is part of the ‘Principles Project,’ a list of principles, axioms, and beliefs that undergird a Christian view of economics, liberty, and virtue. Click here to read the introduction and other posts in this series. Continue Reading...

Introduction to the ‘Principles Project’

A young professor accompanies his mentor to a private meeting of economists from around the country. As they take their seats the host says, “To start us off, let’s have a few rounds of the best jokes.” An elderly woman stands up and says “37,” and everyone laughs. Continue Reading...

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