'This is a most useful book which nicely combines theory and practice. In it the authors provide a framework which helps us better understand the nature of modern financial crises and how monetary and regulatory policies interact in delivering price and financial stability. Certainly worth reading by academics, policymakers and all those interested in deepening their knowledge of how modern financial systems work in both good and bad times.' - Jose Vinals, Standard Chartered, UK 'This collection of papers is a remarkable tour de force. Goodhart and Tsomocos have made pioneering steps toward understanding the causes of financial crises and showing how the financial system can be regulated to reduce and mitigate them. A must-read for anyone interested in financial stability.' - Doyne Farmer, University of Oxford, UK 'Today almost everyone realizes the crucial importance of liquidity, a painful lesson taught by the global financial crisis. This collection records that Goodhart and Tsomocos were early and persistent voices, initially in the wilderness but now almost mainstream, showing the way forward by clothing old wisdom in new modelling.' - Perry G. Mehrling, Columbia University, US Charles Goodhart and Dimitrios P. Tsomocos examine the interaction of monetary and regulatory policy to achieve the important goals of price and financial stability. Their focus is on the relationship between liquidity and default in the post-crisis context, with special emphasis on macroprudential regulation. Exploring how financial stability can be continually assessed and measured, Financial Regulation and Stability discusses the interrelationships between liquidity and default. Without default there would be no concern about liquidity. But the financial crisis was not just a liquidity problem, it requires a general equilibrium model. The authors' model delineates all the potential interrelationships between the real and financial sectors of the economy, with special emphasis on the interaction between liquidity and default. Economists and central bankers will greatly benefit from the practical advice offered in this book to aid financial stability. Advanced students of financial economics will also find this a vital read to understand the consequences of the 2007-8 financial crisis in more depth and the lessons to be learnt.

Building on Green and Janmaat's previous work on education, equality and social cohesion, this book, now in paperback, analyses the various mechanisms that hold different societies together and how these are withstanding the strains of the current economic crisis. In an original, and highly interdisciplinary, mixed method approach, drawing on evidence from historical sociology, political science and political economy, Green and Janmaat identify four major traditions of social cohesion in developed western and east Asian societies, each with specific institutional and cultural foundations. An extensive statistical analysis of contemporary administrative and attitudinal data for over 30 countries demonstrates that there are still distinctive 'regimes of social cohesion' in 'liberal, ' 'social market' and 'social democratic' countries and that they achieve social bonding in quite different ways. As the crisis of globalization unfolds in the wake of the global financial crisis, social cohesion in each regime is vulnerable at different points.

The Global Financial Crisis is acknowledged to be the most severe economic downturn since the 1930s, and one that is unique in its underlying causes, its scope, and its wider social, political and economic implications. This volume explores some of the ethical issues that it has raised.

Review: Within its chosen frame of reference the authors have made a substantial contribution. - Economic & Political Weekly Dutt and Wilber provide a compact yet comprehensive introduction to economics and ethics that thoroughly engages neoclassical economics, distinguishes different approaches to ethics, and discusses such fundamental issues as justice and equality. This is an excellent book, and is highly recommended for teaching and as a resource for scholars. - John B. Davis, Marquette University and University of Amsterdam This is a good and helpful introduction to the normative dimensions of economic theory and policy. - Albino Barrera, Providence College 'Wilbur and Dutt bring a wealth of knowledge and humanity to the task of revitalizing the art of economics. This book provides a nuanced and timely account of the importance of ethics to our understanding of economics and public policies. The reader is in thoughtful and trustworthy hands.' - Jonathan B. Wight, Professor of Economics at the University of Richmond and author of the economic novel Saving Adam Smith: A Tale of Wealth, Transformation, and Virtue.

With the effects of the latest financial crisis still unfolding, this is a timely guide to the politics of international financial reform comparing the policies that the international community requested the IMF to follow in the aftermath of the Mexican, Asian, and subprime crisis.

US capitalism has long been ranked first among nations in production, jobs, wealth, power, and individual freedom. Is this level of preeminence likely to continue? In this candid, sobering assessment of our current fiscal maladies, economist Robert H. Parks explains why he predicts capitalism is now rushing to its demise.
A strong opponent of the supply-side, trickle-down economics that has been in vogue under conservative presidents, Parks argues that bottom-up stimulus and big government spending still have an important role to play in bringing greater prosperity to all US citizens. Citing the stellar examples of the financing of World War II, the use of fiscal and monetary tools to end the Great Depression, social security, and the G.I. Bill, Parks advocates public works programs to rebuild our crumbling infrastructure, improve our public school system, and other vital projects. To critics who object that deficit financing would be inflationary, he counters that the present inadequate system is already producing severe oil and food price inflation, even as house prices continue to plunge.
Among the other urgent problems that the federal government must tackle, Parks addresses the need to curb societal violence and the murder rate through gun control, the worldwide threat from nuclear proliferation through government's leadership in promoting disarmament measures, corruption of government by business through influence-peddling, environmental protection, and, most of all, "the military, industrial, and big oil complex." Parks identifies energy cartels and the armament industry as the "dangerous and secret links of major industries to government officials, corporate executives, and military commanders." He asserts that the loosely regulated manufacture of weapons together with the virtual monopoly over oil production and gas prices constitutes the greatest threat to the welfare, not only of capitalism, but also of global society in the future.
This stern jeremiad from an experienced economics forecaster, who correctly predicted the "mini-depression" of 1981-82, is a call for drastic change in our national agenda and policy making.

This book examines the role of financial globalization in economic growth and derives corresponding implications for economic policy. Although economists have debated the importance of openness to international trade, they generally agree that in the market for goods, international openness is more favorable to growth than a largely closed economy. In contrast, whether external financial openness boosts or curbs growth has long been a controversial issue, and it has become even more so with the outbreak of the global financial crisis of 2007-09.The East Asian financial crisis of the late 1990s raised doubts on this issue, and helped spur a wave of empirical research on it. Supporters of financial globalization-such as Stanley Fischer and Lawrence Summers-maintained that, with the right policies, open capital markets continued to be a powerful means for enhancing growth. Critics, including Jagdish Bhagwati and Joseph Stiglitz, argued that the crisis demonstrated that, unlike free trade in goods, free mobility for capital is counterproductive for growth. In the past decade a large empirical literature has emerged examining this question. Overall it has tended to find that financial globalization has "positive marginal effects on growth." The US-led financial crisis of 2007-09 swept most of the developed and emerging-market economies into its vortex. The global crisis has set the stage for an intensification of the debate on financial openness. Some analysts and policymakers will be inclined to escalate calls for restrictions on capital flows. In the acute phase of the crisis that began in September 2008, major stock markets around the world plunged along with the US equity market, and many currencies fell sharply against the dollar (excluding the yen, which proved, like the dollar, to be a safe-haven currency). If countries had maintained closed capital markets, some may argue, they would not have been vulnerable to these shocks. Cline asserts that financial globalization represents a significant factor in economic growth of emerging-market economies. Further, he argues that a significant portion of current-day GDP can be attributed to the cumulative influence of financial openness, especially in industrial countries.This study surveys the extensive literature on this issue to arrive at a broad sense of the state of the evidence for and against the growth benefits of financial openness. The survey is critical in the sense that it seeks to evaluate strengths and weaknesses of the various studies in addition to summarizing their results. It then applies leading quantitative models from the literature to arrive at synthesis estimates of the contribution of financial openness to growth for major industrial and emerging-market economies over the past four decades. Finally, the book considers the preliminary evidence on whether the 2007-09 financial crisis constitutes grounds for a major change in the policy verdict on financial openness. As part of that reconsideration, the analysis reviews the causes of the global crisis, as well as its principal events and policy interventions.

Since the first edition there have been fundamental changes in the Irish growth model. The sudden collapse of the Irish economy in 2008 raises questions such as: why the sudden and deep decline in economic growth? What are the prospects for a return to growth? Answering these questions and more, this book is the definitive work on the Celtic Tiger.

Rich in archival detail and offering a ground-breaking analysis, this book presents a radically new interpretation of British politics and policy failings during the Great Famine. The Irish famine of the 1840s is the biggest humanitarian crisis in the United Kingdom's history. Within six years of the arrival of the potato blight in Ireland in 1845, more than a quarter of its residents had unexpectedly died or emigrated. Its population has not yet fully recovered since. Historians have struggled to explain why the British government decided to shut down its centrally organised relief efforts in 1847, long before the famine ended. Some have blamed the laissez-faire attitudes of the time for an inadequate response by the British government; others have alleged purposeful neglect and genocide. In contrast, The Great Famine in Ireland and Britain's Financial Crisis uncovers a hidden narrative of the crisis, which links policy failure in Ireland to financial and political instability in Great Britain. More important than a laissez-faire ideology in hindering relief efforts for Ireland were the British government's lack of a Parliamentary majority from 1846, the financial crises of 1847, and a battle of ideas over monetary policy between proponents and opponents of financial orthodoxy. The high death toll in Ireland resulted from the British government's plans for intervention going awry, rather than being prematurely cancelled because of laissez-faire. This book is essential reading for scholars, students and anyone interested in Anglo-Irish relations, the history of financial crises and famines, and why humanitarian-relief efforts can go wrong even with good intentions.

In his acclaimed book "American Theocracy," Kevin Phillips warned of the perilous interaction of debt, financial recklessness, and the spiking cost (and growing scarcity) of oil- warnings that are proving to be frighteningly accurate. Now, in his most significant and timely book yet, Phillips takes the full measure of this crisis. They are a part of what he calls "bad money"- not just the depreciated dollar, but also the dangerous attitudes and the flawed products of wayward mega-finance. His devastating conclusion: In its hubris, the financial sector has hijacked the American economy and put our very global future at risk-and it may be too late to stop it.

The global credit crisis of 2008-2009 was the most serious shock to the world economy in fully 80 years. It was for the world as a whole what the Asian crisis of 1997-1998 was for emerging markets: a profoundly alarming wake-up call. By laying bare the fragility of global markets, it raised troubling questions about the operation of our deeply integrated world economy. It cast doubt on the efficacy of the dominant mode of light-touch financial regulation and more generally on the efficacy of the prevailing commitment to economic and financial liberalization. It challenged the managerial capacity of inherited institutions of global governance. And it augured a changing of the guard, pointing to the possibility that the economies that had been the leaders in the "global growth stakes" in the past might no longer be the leaders in the future. What the crisis means for reform, however, is still unclear. This book brings together leading scholars and policy analysts to describe and weigh the options. Successive chapters assess options for the global financial system, the global trading system, the international monetary system, and the Group of 20 and global governance. A final set of chapters contemplates the policy challenges for emerging markets and the advanced economies in the wake of the financial crisis.

'We need to organise politically to defend the weak, empower the many and prepare the ground for reversing the absurdities of capitalism.' - Yanis Varoufakis 'Capitalism over the past twenty-five years has been an incredible moral good.' - David Brooks The Munk debate on capitalism There is a growing belief that the capitalist system no longer works. Inequality is rampant. The environment is being destroyed for profits. In some western nations, life expectancy is even falling. Political power is wielded by wealthy elites and big business, not the people. But for proponents of capitalism, it is the engine of progress, not just making all of us materially better off, but helping to address everything from women's rights to political freedoms. We seem to stand at a crossroads: do we need to fix the system as a matter of urgency, or would it be better to hold our nerve?

Ray Dalio, the legendary investor and international bestselling author of Principles - whose books have sold more than five million copies worldwide - shares his unique template for how debt crises work and principles for dealing with them well. This template allowed his firm, Bridgewater Associates, to antic ipate 2008's events and navigate them well while others struggled badly. As he explained in his international best seller Principles, Ray Dalio believes that almost everything happens over and over again through time, so that by studying patterns one can understand the cause-effect relationships behind events and develop principles for dealing with them well. In this three-part research series, he does just that for big debt crises and shares his template in the hopes of reducing the chances of big debt crises hap pening and helping them be better managed in the future. The template comes in three parts: 1. The Archetypal Big Debt Cycle (which explains the template) 2. Three Detailed Cases (which examines in depth the 2008 financial crisis, the 1930s Great Depression and the 1920s infla tionary depression of Germany's Weimar Republic) 3. Compendium of 48 Cases (which is a compendium of charts and brief descriptions of the worst debt crises of the last 100 years) Whether you're an investor, a policy maker, or are simply interested in debt, this unconventional perspective from one of the few people who navigated the crisis successfully, Principles for Navigating Big Debt Crises will help you understand the economy and markets in revealing new ways.

Democracy in a Time of Misery: From Spectacular Tragedy to Deliberative Action investigates how democratic politics can unfold in creative and unexpected of ways even at the most trying of times. Drawing on three years of fieldwork in disaster-affected communities in Tacloban City, Philippines, this book presents ethnographic portraits of how typhoon survivors actively perform their suffering to secure political gains. Each chapter traces how victims are transformed to 'publics' that gain voice and visibility in the global public sphere through disruptive protests, collaborative projects, and political campaigns that elected the strongman Rodrigo Duterte to presidency. It also examines the micropolitics of silencing that lead communities to withdraw and lose interest in politics. These ethnographic descriptions come together in a theoretical project that makes a case for a multimodal view of deliberative action. It underscores the embodied, visual, performative and subtle ways in which affective political claims are constructed and received. It concludes by arguing that while emotions play a role in amplifying marginalized political claims, it also creates hierarchies of misery that renders some forms of suffering more deserving of compassion than others. The book invites readers to reflect on challenging ethical issues when examining political contexts defined by widespread depravity and dispossession, and the democratic ethos demanded of global publics in responding to others' suffering.

The euro's life, while only slightly more than a decade long, has been riddled by a series of challenges and crises. The disparity between the prosperous Northern countries of Germany and France and the plummeting Southern countries, including Italy and Greece, has exacerbated problems within the political and economic union of the Eurozone. The North, especially Germany, has debated where to draw the line between doing whatever is necessary to save the common currency and what they have viewed as a charity bailout of countries who flouted the rules for a decade and suffered predictable consequences. Meanwhile, Southern countries such as Italy, Spain, and Greece have grown increasingly bitter at the patronizing attitudes of their partners to the North. Amidst loud and frequent debates, solutions including routes for increased integration and punitive policies and reforms have been enacted and discarded to a limited degree of success. The struggles facing this monetary union continue to develop even today. The Euro Crisis and Its Aftermath was written to inform readers about the history of this enduring European crisis and the alternative proposals for ending it. In four parts, Jean Pisani-Ferry explains the origins of the European currency, the build-up of imbalances and oversights that led to the crisis, the choices European policymakers have both addressed and ignored since 2010, and the evolution of the policy agenda and possible options for the future. The book is as much of an informative and analytical history as it is a prescriptive solution for a more prosperous future world economy. Rather than putting forth and supporting a thesis, Pisani-Ferry helps readers understand the past and present of the euro crisis and form their own opinions about potential solutions.

China's economic growth is sputtering, the Euro is under threat, and the United States is combating serious trade disadvantages. Another Great Depression? Not quite. Noted economist and China expert Michael Pettis argues instead that we are undergoing a critical rebalancing of the world economies. Debunking popular misconceptions, Pettis shows that severe trade imbalances spurred on the recent financial crisis and were the result of unfortunate policies that distorted the savings and consumption patterns of certain nations. Pettis examines the reasons behind these destabilizing policies, and he predicts severe economic dislocations that will have long-lasting effects.

Demonstrating how economic policies can carry negative repercussions the world over, "The Great Rebalancing" sheds urgent light on our globally linked economic future.

Being the first casualty of the international financial crisis, Iceland was, in many ways, turned into a laboratory when it came to responding to one of the largest corporate failures on record. This edited volume offers the most wide-ranging treatment of the Icelandic financial crisis and its political, economic, social, and constitutional consequences. Interdisciplinary, with contributions from historians, economists, sociologists, legal scholars, political scientists and philosophers, it also compares and contrasts the Icelandic experience with other national and global crises. It examines the economic magnitude of the crisis, the social and political responses, and the unique transitional justice mechanisms used to deal with it. It looks at backward-looking elements, including a societal and legal reckoning - which included the indictment of a Prime Minister and jailing of leading bankers for their part in the financial crisis - and forward-looking features, such as an attempt to rewrite the Icelandic constitution. Throughout, it underscores the contemporary relevance of the Icelandic case. While the Icelandic economic recovery has been much quicker than expected; it shows that public faith in political elites has not been restored. This text will be of key interest to scholars, policy-makers and students of the financial crisis in such fields as European politics, international political economy, comparative politics, sociology, economics, contemporary history, and more broadly the social sciences and humanities.

The unprecedented housing and homelessness crisis in Ireland is having profound impacts on Generation Rent, the wellbeing of children, worsening wider inequality and threatening the economy. Hearne contextualises the Irish housing crisis within the broader global housing situation by examining the origins of the crisis in terms of austerity, marketisation and the new era of financialisation, where global investors are making housing unaffordable and turning it into an asset for the wealthy. He brings to the fore the perspectives of those most affected, new housing activists and protesters whilst providing innovative global solutions for a new vision for affordable, sustainable homes for all.

In 2007-8 the world economy started its heady journey to recession. The Queen herself asked "why didn't we see this coming," but it's a question that remains unanswered. A decade later and it is still not clear exactly who is responsible for the crisis. The world has experienced the long-term impact of austerity policies on its welfare system and the political landscape is completely changed. This analysis of the media that reported on this crisis and where it came from is long overdue. The media were responsible for warning the public-a role they failed in. This book provides evidence that journalists, like bankers and regulators, need to be held accountable. The Global Financial Crisis is a starting point, but it deserves a much wider context and explanation, one this book provides for the first time. Looking at three global and pivotal financial crises, this book assesses the degree to which financial and economics journalists have played a watchdog role for society. It takes a long glance back from the Global Financial Crisis of 2007-8 to look at the (as it shows, gradually narrowing) content we have been reading in mainstream publications, and speaks to journalists in three countries to gauge the reality of the situation from the perspective of the newsroom.

When financial crises occur, it has long been accepted that national economies need a lender of last resort to stabilize markets. In today's global financial system, crises are rarely confined to one country. Indeed, they often go global. Yet, there is no formal international lender of last resort (ILLR) to perform this function for the world economy. Conventional wisdom says that the International Monetary Fund (IMF) has emerged as the de facto ILLR. Yet, that premise is incomplete. Brother, Can You Spare a Billion? explores how the United States has for decades regularly complemented the Fund's ILLR role by selectively providing billions of dollars in emergency loans to foreign economies in crisis. Why would U.S. policymakers ever put national financial resources at risk to "bailout" foreign governments and citizens to whom they are not beholden when the IMF was created for this purpose? Daniel McDowell argues the United States has been compelled to provide such rescues unilaterally when it believes a multilateral response via the IMF is either too slow or too small to protect vital U.S. economic and financial interests. Through a combination of historical case studies and statistical analysis, McDowell uncovers the defensive motives behind U.S. decisions to provide global liquidity beginning in the 1960s, moving through international debt crises of the 1980s and emerging market currency crises of the 1990s, and extending up to the 2008 global financial crisis. Together, these analyses paint a more complete picture of how international financial crises have been managed and highlight the unique role that the U.S. has played in stabilizing the world economy in troubled times.

The subprime mortgage crisis has already wreaked havoc on the lives of millions of people and now it threatens to derail the U.S. economy and economies around the world. In this trenchant book, best-selling economist Robert Shiller reveals the origins of this crisis and puts forward bold measures to solve it. He calls for an aggressive response--a restructuring of the institutional foundations of the financial system that will not only allow people once again to buy and sell homes with confidence, but will create the conditions for greater prosperity in America and throughout the deeply interconnected world economy.

Shiller blames the subprime crisis on the irrational exuberance that drove the economy's two most recent bubbles--in stocks in the 1990s and in housing between 2000 and 2007. He shows how these bubbles led to the dangerous overextension of credit now resulting in foreclosures, bankruptcies, and write-offs, as well as a global credit crunch. To restore confidence in the markets, Shiller argues, bailouts are needed in the short run. But he insists that these bailouts must be targeted at low-income victims of subprime deals. In the longer term, the subprime solution will require leaders to revamp the financial framework by deploying an ambitious package of initiatives to inhibit the formation of bubbles and limit risks, including better financial information; simplified legal contracts and regulations; expanded markets for managing risks; home equity insurance policies; income-linked home loans; and new measures to protect consumers against hidden inflationary effects.

This powerful book is essential reading for anyone who wants to understand how we got into the subprime mess--and how we can get out. In a new preface to this powerful book, Shiller discusses the development of the crisis in relation to the ideas presented in "The Subprime Solution."

The 2008 global financial crisis affects everyone, but its root causes and potential cures - knowledge necessary in order to make strong financial decisions moving forward - are confusing to many. This compilation of expert views from the University of Toronto's Rotman School of Management navigates what went wrong, why, and the lessons that these events can teach business people, policy makers, and interested observers alike.

"The Finance Crisis and Rescue" features essays from ten leading Rotman professors and renowned journalist Michael Hlinka as well as a foreword by Rotman Dean Roger Martin. These intellectual leaders from the front lines of business thinking tackle the subject from varied perspectives, analyzing the crisis through their diverse backgrounds in fields such as structured finance, behavioural finance, value investing, pension plans, risk management, corporate governance, public policy, and leadership.

A timely and considered response to current events, "The Finance Crisis and Rescue" will be of interest to all those following recent global financial developments.

The 2008 crash was the worst financial crisis and the most severe economic downturn since the Great Depression. It triggered a complete overhaul of the global regulatory environment, ushering in a stream of new rules and laws to combat the perceived weakness of the financial system. While the global economy came back from the brink, the continuing effects of the crisis include increasing economic inequality and political polarization. After the Crash is an innovative analysis of the crisis and its ongoing influence on the global regulatory, financial, and political landscape, with timely discussions of the key issues for our economic future. It brings together a range of experts and practitioners, including Joseph Stiglitz, a Nobel Prize winner; former congressman Barney Frank; former treasury secretary Jacob Lew; Paul Tucker, a former deputy governor of the Bank of England; and Steve Cutler, general counsel of JP Morgan Chase during the financial crisis. Each poses crucial questions: What were the origins of the crisis? How effective were international and domestic regulatory responses? Have we addressed the roots of the crisis through reform and regulation? Are our financial systems and the global economy better able to withstand another crash? After the Crash is vital reading as both a retrospective on the last crisis and an analysis of possible sources of the next one.

On June 28th 2012, the small island of Cyprus became the fifth government to request an economic bail-out from the Eurozone after losing access to international capital markets. Less than a year later, a EURO10 billion second rescue deal was agreed upon - an unprecedented agreement that bailed in creditors of Cyprus' two largest banks, and triggered an economic crisis that the nation still struggles to recover from today.This resourceful collection of essays provides a thorough and in depth analysis of how Cyprus reached the point of failure and what lessons this experience holds for future economic crises. The various perspectives collectively address unanswered questions, including whether the bail-in can be considered successful, why the recession was less severe than expected, and what conclusions can be drawn about stress-testing exercises across borders.Focusing on one of the (proportionately) largest crises in financial history, the case study will prove essential to policy-makers and politicians, especially in the euro area.