Headed by Professor Trond Helge Torsvik, this group worked to incorporate the theory of plate tectonics into a broader theory of mantle dynamics as an explanatory model for movements in the Earth’s crust. The aim is to understand the development of the Earth over several hundred million years. This is truly an ambitious example of learning from history. The Centre for Earth Evolution and Dynamics at the University of Oslo was just awarded the status of Centre of Excellence in research. 3  Descriptions of the causes of the financial crisis that began in1929 bear a striking resemblance to today’s headlines: a massive and unregulated shadow banking system, global imbalances and substantial income inequality (see John Kenneth Galbraith (1997): The Great Crash, 1929, Houghton Mifflin). 4  “More than anyone else”, Einar Lie writes, “he adhered to the fiscal policy convictions that he brought along to the postwar Ministry of Finance, which bore the stamp of his experience from a time without sufficiently stringent regulation of government finances”. Lie, E. and C. Venneslan (2010) Over evne. Finansdepartementet 1965–1992 [Beyond our power], Pax forlag  2  BIS central bankers’ speeches  markets were self-correcting. Following the Depression, a new truth emerged, with John Maynard Keynes and Norway’s own Ragnar Frisch at the forefront: prices and wages do not adjust that quickly – nor can we expect that markets will automatically ensure full employment. Hence, government should play a more active role in economic policy. At the Ministry of Finance, Nissen kept to the traditional view.
John Law saw the possibility of printing banknotes to finance promising development projects in the New World. Excessive confidence in the potential for profits fuelled both the printing presses and equity prices in Paris. The bubble burst and John Law fled to Italy.24 Today, the  24  Government debt in France had reached enormous proportions after the Spanish War of Succession (1702–1713). After the death of Louis XIV in 1715, John Law persuaded the French authorities to convert government debt into equity capital in the Compagnie d’Occident, also known as the Mississippi Company. The company was awarded exclusive rights to develop the French territories in North America and a number of trade privileges. Banque Générale was taken over by the state, given the name Banque Royale, and later merged with Mississippi Company. John Law was appointed Contrôleur Général des Finances and now controlled in practice France’s finances and all trade between France and countries outside Europe. Banque Royale was given unlimited rights to issue banknotes (livres tournois). This was the first time paper money had been issued in France. The banknotes were made legal tender and the bank was given the right to collect taxes. An increasing number of stocks in the Mississippi Company were issued against government debt or paper notes issued by the Banque Royale. This led to a speculative bubble and new rounds of share issues. The value of the shares rose twentyfold in the course of 1719 and the number of millionaires rose sharply.