Wednesday was focused on the economics mostly, starting off with a screening of Overdose: A Film about the Next Financial Crisis. followed by Mark Calabria's talk on The Financial Crisis: A Failure of Government or Markets?. He focused on the consequences of the Dodd-Frank Act, with respect to the oversight of credit rating agencies and the role of the Fed as a risk regulator within the system.
Before lunch, Dan Mitchell talked about The Fiscal Future for Europe and America, leaving the participants with two crucial lessons for having a good fiscal policy: (1) government spending should grow slower than nominal GDP; (2) taxes should be low because high taxes make the economy grind to a halt.
In the afternoon, Mark talked about The Dollar, Euro and Renminbi: The Future of International Currency Competition, mentioning two traits of world currencies: (1) efficient medium of exchange and (2) have a stable store of value. The take-away in terms of predicting the next world currency was that money runs from conflict so political stability is paramount.
Dan ended the academic part of day with a discussion on Flat Tax, Tax Competition and Tax Haven, explaining how tax competition drives the tax rates down, which benefits everyone.
Afterwards, we all headed outside for a barbeque and a camp fire, followed by the formation of a spontaneous choir, dedicat ed to singing 'Yellow Submarine' late into the night.