HKS Affiliated Authors


2007, Paper: "They say “there are no atheists in foxholes.” Perhaps, then, there are also no libertarians in crises. Even those in favor of sharply reducing the role of the government usually agree that, for example, there is a valid lender of last resort role for the central bank in the event of banking panics or disruptions as occurred on September 11, 2001.1 But crises should not become an excuse for public policy that is hasty or ill-informed, or that serves primarily the interests of the policymakers themselves or of special interests. The response must be
appropriate and careful. It must be informed by the longer-term perspective offered in the lessons of historical precedent, particularly regarding the fallibility of well-intentioned government intervention..."