Ricardo Caballero, Ford International Professor of Economics
Head, Department of Economics
MIT School of Humanities, Arts, and Social Sciences
Just one year ago [in 2008] a worldwide panic was unfolding: Financial markets froze after the collapse of the investment bank Lehman Brothers, leaving businesses without lenders as the economy drastically slowed. How can we stave off such fear-enhanced episodes in the future? Ricardo Caballero, MIT's Ford International Professor of Economics, offers a distinctive solution: Government-issued investment insurance for banks.
Massachusetts Institute of Technology