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Report 2010-2011

social and economic policy, but was inclined to believe that the crisis had if anything proven the necessity of social welfare states as we know them. Inevitably the world will change and, by creating new social and economic realities, create the potential for the next global crisis. As Thomas Cooley stressed, financial regulators therefore have to respond to financial innovations on an on-going basis. However, once the crisis hits, our response itself is crucial and will have a large impact on how quickly we emerge from it. Timothy Kehoe argued convincingly that the severity of a crisis is often aggravated by the way governments react to it. By bailing out unproductive firms, governments give the wrong incentives to their private sector, resulting in stagnating productivity and prolonged periods of low growth. Since crises are unavoidable and the changes they invoke already seem to harbour the seeds of the next crisis we might do well to change our general approach to them. They cannot be eradicated and although a harbinger of useful change, social scientists will have to work on how to contain their negative effects. Thus Joanna Gray argued at the end of the conference that what we

really face is the task of acknowledging that at some point our future will unfold in a radically different manner from what we currently expect. What we need are strategies that fully take into account the limits of acting ex ante. Strategies which incorporate the recurring nature of economic crises and aim at harvesting the positive impact that they carry for society, while still aspiring to contain the negative consequences they entail. Keynote speakers included: Anton Hemerijck, (VU Amsterdam), Timothy Kehoe, (University of Minnesota), Romain Rancière, (École économique de Paris), Wolfgang Streeck, (Max Planck Institute), Giorgio Monti, (EUI), Albrecht Ritschl, (London School of Economics), Thomas Cooley, (New York University), Joanna  Gray, (University of Newcastle) and Youssef Cassis, (EUI). The following Fellows were active as organizers, chairs and commentators: Alexandre Afonso (SPS), Guinia Gatta (SPS), Marco Gobbato (LAW), Masanori Kashiwagi (ECO), Reuben Kline (SPS), Jan Klingelhöfer (ECO), Nathan Marcus (HEC), AnneIsabelle Richard (HEC), Yane Svetiev (LAW), Rebecca Zahn (LAW), Galina Zapryanova (SPS).

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Max Weber Programme Annual Report - Academic Year 2010-2011  

Reports on the 2010-2011 teaching and research activities of the largest postdoctoral programme for young academics in the social sciences,...