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Economists Against The Paulson Plan
To the
Speaker of the House of Representatives and the President pro
tempore of the Senate:
http://www.informationclearinghouse.info/article20873.htm
26/09/09
As economists, we want to express to Congress our great concern
for the plan proposed by Treasury Secretary Paulson to deal with the
financial crisis. We are well aware of the difficulty of the current
financial situation and we agree with the need for bold action to
ensure that the financial system continues to function. We see three
fatal pitfalls in the currently proposed plan:
1)
Its fairness. The plan is a subsidy to
investors at taxpayers’ expense. Investors who took risks to earn
profits must also bear the losses. Not every business failure
carries systemic risk. The government can ensure a well-functioning
financial industry, able to make new loans to creditworthy
borrowers, without bailing out particular investors and institutions
whose choices proved unwise.
2) Its ambiguity.
Neither the mission of the new agency nor its
oversight are clear. If
taxpayers are to buy illiquid and opaque assets from troubled
sellers, the terms, occasions, and methods of such purchases must be
crystal clear ahead of time and carefully monitored
afterwards.
3) Its long-term effects. If
the plan is enacted, its effects will be with us for a generation.
For all their recent troubles, America's dynamic and innovative
private capital markets have brought the nation unparalleled
prosperity. Fundamentally weakening those markets in order to
calm short-run disruptions is desperately short-sighted.
For these reasons we ask Congress not to rush, to hold
appropriate hearings, and to carefully consider the right course of
action, and to wisely determine the future of the financial industry
and the U.S. economy for years to come.
Signed (updated at
9/25/2008 8:30AM CT)
Acemoglu Daron
(Massachussets Institute of Technology)
Adler Michael (Columbia
University)
Admati Anat R. (Stanford University)
Alexis Marcus
(Northwestern University)
Alvarez Fernando (University of
Chicago)
Andersen Torben (Northwestern University)
Baliga
Sandeep (Northwestern University)
Banerjee Abhijit V.
(Massachussets Institute of Technology)
Barankay Iwan (University
of Pennsylvania)
Barry Brian (University of Chicago)
Bartkus
James R. (Xavier University of Louisiana)
Becker Charles M.
(Duke University)
Becker Robert A. (Indiana University)
Beim
David (Columbia University)
Berk Jonathan (Stanford
University)
Bisin Alberto (New York University)
Bittlingmayer
George (University of Kansas)
Boldrin Michele (Washington
University)
Brooks Taggert J. (University of
Wisconsin)
Brynjolfsson Erik (Massachusetts Institute of
Technology)
Buera Francisco J. (UCLA)
Camp Mary Elizabeth
(Indiana University)
Carmel Jonathan (University of
Michigan)
Carroll Christopher (Johns Hopkins
University)
Cassar Gavin (University of Pennsylvania)
Chaney
Thomas (University of Chicago)
Chari Varadarajan V. (University
of Minnesota)
Chauvin Keith W. (University of
Kansas)
Chintagunta Pradeep K. (University of
Chicago)
Christiano Lawrence J. (Northwestern
University)
Cochrane John (University of Chicago)
Coleman John
(Duke University)
Constantinides George M. (University of
Chicago)
Crain Robert (UC Berkeley)
Culp Christopher
(University of Chicago)
Da Zhi (University of Notre
Dame)
Davis Morris (University of Wisconsin)
De Marzo Peter
(Stanford University)
Dubé Jean-Pierre H. (University of
Chicago)
Edlin Aaron (UC Berkeley)
Eichenbaum Martin
(Northwestern University)
Ely Jeffrey (Northwestern
University)
Eraslan Hülya K. K.(Johns Hopkins
University)
Faulhaber Gerald (University of
Pennsylvania)
Feldmann Sven (University of
Melbourne)
Fernandez-Villaverde Jesus (University of
Pennsylvania)
Fohlin Caroline (Johns Hopkins University)
Fox
Jeremy T. (University of Chicago)
Frank Murray Z.(University of
Minnesota)
Frenzen Jonathan (University of Chicago)
Fuchs
William (University of Chicago)
Fudenberg Drew (Harvard
University)
Gabaix Xavier (New York University)
Gao Paul
(Notre Dame University)
Garicano Luis (University of
Chicago)
Gerakos Joseph J. (University of Chicago)
Gibbs
Michael (University of Chicago)
Glomm Gerhard (Indiana
University)
Goettler Ron (University of Chicago)
Goldin
Claudia (Harvard University)
Gordon Robert J. (Northwestern
University)
Greenstone Michael (Massachusetts Institute of
Technology)
Guadalupe Maria (Columbia University)
Guerrieri
Veronica (University of Chicago)
Hagerty Kathleen (Northwestern
University)
Hamada Robert S. (University of Chicago)
Hansen
Lars (University of Chicago)
Harris Milton (University of
Chicago)
Hart Oliver (Harvard University)
Hazlett Thomas W.
(George Mason University)
Heaton John (University of
Chicago)
Heckman James (University of Chicago - Nobel
Laureate)
Henderson David R. (Hoover Institution)
Henisz,
Witold (University of Pennsylvania)
Hertzberg Andrew (Columbia
University)
Hite Gailen (Columbia University)
Hitsch Günter J.
(University of Chicago)
Hodrick Robert J. (Columbia
University)
Hopenhayn Hugo (UCLA)
Hurst Erik (University of
Chicago)
Imrohoroglu Ayse (University of Southern
California)
Isakson Hans (University of Northern Iowa)
Israel
Ronen (London Business School)
Jaffee Dwight M. (UC
Berkeley)
Jagannathan Ravi (Northwestern University)
Jenter
Dirk (Stanford University)
Jones Charles M. (Columbia Business
School)
Kaboski Joseph P. (Ohio State University)
Kahn Matthew
(UCLA)
Kaplan Ethan (Stockholm University)
Karolyi, Andrew
(Ohio State University)
Kashyap Anil (University of
Chicago)
Keim Donald B (University of Pennsylvania)
Ketkar
Suhas L (Vanderbilt University)
Kiesling Lynne (Northwestern
University)
Klenow Pete (Stanford University)
Koch Paul
(University of Kansas)
Kocherlakota Narayana (University of
Minnesota)
Koijen Ralph S.J. (University of Chicago)
Kondo
Jiro (Northwestern University)
Korteweg Arthur (Stanford
University)
Kortum Samuel (University of Chicago)
Krueger Dirk
(University of Pennsylvania)
Ledesma Patricia (Northwestern
University)
Lee Lung-fei (Ohio State University)
Leeper Eric
M. (Indiana University)
Leuz Christian (University of
Chicago)
Levine David I.(UC Berkeley)
Levine David
K.(Washington University)
Levy David M. (George Mason
University)
Linnainmaa Juhani (University of Chicago)
Lott
John R. Jr. (University of Maryland)
Lucas Robert
(University of Chicago - Nobel Laureate)
Luttmer Erzo G.J.
(University of Minnesota)
Manski Charles F. (Northwestern
University)
Martin Ian (Stanford University)
Mayer Christopher
(Columbia University)
Mazzeo Michael (Northwestern
University)
McDonald Robert (Northwestern University)
Meadow
Scott F. (University of Chicago)
Mehra Rajnish (UC Santa
Barbara)
Mian Atif (University of Chicago)
Middlebrook Art
(University of Chicago)
Miguel Edward (UC Berkeley)
Miravete
Eugenio J. (University of Texas at Austin)
Miron Jeffrey (Harvard
University)
Moretti Enrico (UC Berkeley)
Moriguchi Chiaki
(Northwestern University)
Moro Andrea (Vanderbilt
University)
Morse Adair (University of Chicago)
Mortensen Dale
T. (Northwestern University)
Mortimer Julie Holland (Harvard
University)
Muralidharan Karthik (UC San Diego)
Nanda
Dhananjay (University of Miami)
Nevo Aviv (Northwestern
University)
Ohanian Lee (UCLA)
Pagliari Joseph (University of
Chicago)
Papanikolaou Dimitris (Northwestern
University)
Parker Jonathan (Northwestern University)
Paul
Evans (Ohio State University)
Pejovich Svetozar (Steve) (Texas
A&M University)
Peltzman Sam (University of Chicago)
Perri
Fabrizio (University of Minnesota)
Phelan Christopher (University
of Minnesota)
Piazzesi Monika (Stanford University)
Piskorski
Tomasz (Columbia University)
Rampini Adriano (Duke
University)
Reagan Patricia (Ohio State University)
Reich
Michael (UC Berkeley)
Reuben Ernesto (Northwestern
University)
Roberts Michael (University of
Pennsylvania)
Robinson David (Duke University)
Rogers Michele
(Northwestern University)
Rotella Elyce (Indiana University)
Ruud Paul (Vassar College)
Safford Sean (University of
Chicago)
Sandbu Martin E. (University of
Pennsylvania)
Sapienza Paola (Northwestern University)
Savor
Pavel (University of Pennsylvania)
Scharfstein David (Harvard
University)
Seim Katja (University of Pennsylvania)
Seru Amit
(University of Chicago)
Shang-Jin Wei (Columbia
University)
Shimer Robert (University of Chicago)
Shore
Stephen H. (Johns Hopkins University)
Siegel Ron (Northwestern
University)
Smith David C. (University of Virginia)
Smith
Vernon L.(Chapman University- Nobel Laureate)
Sorensen Morten
(Columbia University)
Spiegel Matthew (Yale
University)
Stevenson Betsey (University of
Pennsylvania)
Stokey Nancy (University of Chicago)
Strahan
Philip (Boston College)
Strebulaev Ilya (Stanford
University)
Sufi Amir (University of Chicago)
Tabarrok Alex
(George Mason University)
Taylor Alan M. (UC Davis)
Thompson
Tim (Northwestern University)
Tschoegl Adrian E. (University of
Pennsylvania)
Uhlig Harald (University of Chicago)
Ulrich,
Maxim (Columbia University)
Van Buskirk Andrew (University of
Chicago)
Veronesi Pietro (University of
Chicago)
Vissing-Jorgensen Annette (Northwestern
University)
Wacziarg Romain (UCLA)
Weill Pierre-Olivier
(UCLA)
Williamson Samuel H. (Miami University)
Witte Mark
(Northwestern University)
Wolfers Justin (University of
Pennsylvania)
Woutersen Tiemen (Johns Hopkins
University)
Zingales Luigi (University of Chicago)
Zitzewitz
Eric (Dartmouth College)
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