Political Bubbles: Financial Crises and the Failure of American Democracy

(Princeton University Press) For every financial bubble that eventually led to crisis, there was a corresponding political bubble born of ineffective government institutions, inflexible ideologies, and special interests, argue the authors. They also explore the role of political bubbles in the 2008 financial crisis. McCarty is a professor of politics and public affairs and chair of the politics department at Princeton University. Rosenthal is a professor of politics at New York University and professor emeritus of social sciences at Princeton University.