Discussion answers economic questions

With the economic crisis getting deeper, people are doing whatever they can to obtain information on what is next.

Indiana’s Department of Economics presented “Worldwide Economic Crisis: Proximate Historical Perspective and Policy Response” on Friday to a packed audience in Woodburn Hall.

Students, faculty and Bloomington residents attended the panel featuring seven economists who provided an academic perspective of the current economic situation.

Eric Leeper, professor of economics, introduced the forum by discussing the low level of economic discourse in the media and from politicians.

Leeper explained how important an academic perspective is and how politics would stay out of the panel.

“A low level of understanding creates fear and opposition to economic policy plans,” he said.

Retired Bloomington resident Abby Downey attended the forum for that exact reason.

“I’ve been evaluating what politicians are telling us, but I absolutely hope to get an academic response,” she said.

The information from the economists was not for the faint of heart. Discussions of specific institutions and agencies within the government made it clear to the audience how much information is missing from the news.

Freshman Sarah Merryman said she wanted to attend the panel to get a little taste of what was going on.

“My classes keep it as such a basic level,” she said. “It’s something interesting to see a more professional input.”

Presenters spoke about topics ranging from the current crisis to previous economic problems, the stimulus package and the future of our economy.

Gregory Udell, professor of finance in the Kelley School of Business, focused on one of the hottest topics in the news today: the regulations of banks.

“Some are predicting that as many as 1,000 small banks will be closing in the near future, and I am one of them,” he said.

He pinpointed the Federal Reserve as possibly the most critical player in the failure of regulating banks.

“Lax regulation at the Fed may be the big culprit,” he said.

Although the seriousness of the topic was clear, that did not keep George von Furstenberg, professor of economics, from making light of some obvious mistakes by the government.

Von Furstenberg had several pictures juxtaposed with words or figures that made them comical to the attendees.

One picture showed Ben Bernanke, current Federal Reserve Chairman, with a floating pot between two hands.

“I guess we will just have to see what he is cooking up next,” von Furstenberg said jokingly.