Wall Street Journal Publishes Dean Canova’s Op-Ed
October 22, 2008
Associate Dean Timothy Canova authored an op-ed appearing in the Wall Street Journal entitled, “Massive Stimulus May Be Needed to Stem Crisis.” In his piece, Dean Canova discussed the similarities between the current financial crisis and the Great Depression and suggests that a grand scale financial stimulus is likely needed to overcome the current financial crisis. “If one lesson of the Great Depression is that the Federal Reserve must be ready to expand the money supply, another lesson (one that has not been widely recognized) is that monetary expansion alone will not renew a growth path for the economy when people’s liquidity preferences are very high because of a collapse in confidence.” He added, “To restore business and consumer confidence and pull the economy out of the Depression required fiscal stimulus (massive wartime spending) on a scale far in excess of anything that is presently being discussed by policymakers at the Federal Reserve, in Congress, or by the presidential candidates.” Read article…