Richard Epstein and John Taylor reflect on the global economic crisis of 2008 and discuss why the Keynesian narrative of events fails to identify and explain the causes at the root of the crisis.

Epstein and Taylor evaluate the government responses to the crisis, assessing the effectiveness of TARP and President Obama’s stimulus legislation. Finally, Epstein and Taylor lay out the future steps that government must take to ensure recovery and growth. Key among them: “Don’t raise taxes.” (38:14) Video transcript.

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• start video from beginning After introducing the opposing approaches to economics of John Maynard Keynes and Milton Friedman, Hoover fellows Richard Epstein and John Taylor discuss U.S. monetary policy from the 1970s onward.
• start segment 2 at 6:35 What went wrong with the U.S. economy in the 21st century? To what degree is monetary policy to blame? Richard Epstein and John Taylor respond.
• start segment 3 at 14:26 Richard Epstein and John Taylor explain why it is misleading to blame the free market for the financial crisis.
• start segment 4 at 22:23 How well did our leaders handle the financial crisis? Richard Epstein and John Taylor respond.
• start segment 5 at 30:30 How well are our leaders—including Federal Reserve chair Ben Bernanke—managing the aftermath of the financial crisis? Richard Epstein and John Taylor respond.