Cynthia McKinney - Cost of Financial Recovery - Debate Answer

Cynthia McKinney, Green Party Presidential candidate, responds to Debate questions (9/27) on what priorities would you have to give up as President to pay for a financial recovery plan. votetruth08.com

1. Why Finance?

Financial Theory (ECON 251) This lecture gives a brief history of the young field of financial theory, which began in business schools quite separate from economics, and of my growing interest in the field and in Wall Street. A cornerstone of standard financial theory is the efficient markets hypothesis, but that has been discredited by the financial crisis of 2007-09. This lecture describes the kinds of questions standard financial theory nevertheless answers well. It also introduces the leverage cycle as a critique of standard financial theory and as an explanation of the crisis. The lecture ends with a class experiment illustrating a situation in which the efficient markets hypothesis works surprisingly well. Complete course materials are available at the Open Yale Courses website: open.yale.edu This course was recorded in Fall 2009.