What works and what doesn’t

Brad DeLong advocates a Swedish approach (taking over the banks) versus a Paulson-Dodd-Frank plan not backed up by the Republicans.  On his most recent blog entry, Krugman agrees that’d be the choice of last-resort.

To understand the case of Sweden (1992), you may want to read this article in the New York Times or, if inclined to read more technical stuff, this NBER paper by Maurice Obstfeld.

The IMF has a report (pdf) out on what works and what doesn’t in bailouts.  Thanks to Joanna Bujes for the lead.

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