Viral Acharya, Raghu Sundaram, 26 October 2008

The recapitalisation aspects of the October rescue packages have been widely analysed by the world’s most effective think-tank in this crisis – the blogosphere. Here finance professors from LBS and NYU evaluate the rescue packages’ loan guarantees. The UK scheme has the flavour of a small tax, and is partly market-reliant; The US plan has the flavour of a $50 billion subsidy, and is almost fully government-reliant. Which scheme works better may depend upon the depth of the coming recession.

Tito Boeri, 15 October 2008

Are EU citizens ready to accept the crisis rescue plan that makes massive transfers of resources from taxpayers to the banking sector? This column proposes three ways to share the rescue’s benefits with citizens: increased competition in the banking sector, tax reductions for low-wage earners, and temporary relief schemes for families with mortgage problems.

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