A few days ago, I wrote a blog post where I tried to collect together the outpouring of intellectual effort in understanding the financial disturbances of 2007 and 2008. Jayanth Varma also has an interesting blog post where he offers his original and very insightful ideas on this. While I am mostly derivative; he is mostly original.
In Business Standard today, I wrote a compact 1000 word summary sketching the key big questions and big ideas that are in play. It is useful as a compact executive summary. The above two blog posts are useful in giving you links to all the underlying source material.
The cartoonist for Business Standard took off from my last paragraph where I say:
For us in India, while these discussions are intellectually interesting, there is little by way of implications for domestic policy debates. We in India are still at the level of being tribesmen in the Kalahari desert reading stories about plane crashes in faraway continents. The first order issues that need to be addressed in India remain those of breaking down a repressive license-permit raj, and setting up a consistent monetary policy framework.
He came up with this: