Economists and the Bailout

Posted by: Phil Mintz on September 26, 2008

The Chronicle of Higher Education this afternoon posted a short but interesting QandA with Paola Sapienza, a finance prof at Northwestern’s Kellogg School of Management. She’s one of five profs who organized a petition signed by about 200 academics expressing concern over Treasury Secretary Henry Paulson’s financial bailout plan. On Thursday, Sen. Richard Shelby, a Republican from Alabama, cited the petition as evidence that there are substantial questions about the direction the bailout is taking.

Luigi Zingales, Robert C. Mc Cormack Professor of Entrepreneurship and Finance at University of Chicago Graduate School of Business and one of the signers of the petition, posted this analysis of the Paulson plan.

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