Financial Crises and Recession in the Global Economy, Second Edition

Financial Crises and Recession in the Global Economy, Second Edition

Roy E. Allen

This timely and authoritative book explains the rise and fall of economies in Asia, Central America and Europe since 1980 and discusses these crises in the context of continuing economic globalization. This updated and fully revised edition includes a detailed account of the Mexican crisis of 1994–95, the Japanese crisis which has worsened in the late 1990s and the Asian crisis which emerged in 1997. Professor Allen discusses the impact of new uses and forms of money, and new financial flows such as electronic monies and offshore financial markets.

Introduction

Roy E. Allen

Subjects: economics and finance, financial economics and regulation, international economics

Extract

  The author originally decided to write this book because of his dissatisfaction with the typical textbooks in international economics, macroeconomics, and the related  subjects that he teaches. These textbooks do not present the major structural changes and recent events in the global economy to his satisfaction; insufficient attention is  typically given to financial market globalization, new trade patterns, new forms and uses of money, monetary­wealth processes, recent changes in the velocity of  circulation of money, and recent financial crises and recession. Chapters 1–4 cover these topics.  Chapters 1–3 are organized in a manner which provides background material for Chapter 4's discussions of economic crises. The detailed case studies include the  global recession of the early 1980s, the world stock market crash of 1987, the 1980s and continuing world debt crisis, the slumps of the early 1990s, Mexico's crisis of  1994–95, Japan's crisis after 1989, and Asia's crisis after 1997. Less detailed mention is made of the Great Depression of the 1930s, the US savings and loan crisis of  the 1980s, the Russian crisis of 1998, and various other slumps.  The concluding Chapter 5, International Adjustments and Political Responses, summarizes what the book might contribute to the fields of international economics,  macroeconomics, and related subjects such as international political economy. In addition, Chapter 5 provides suggestions for policymakers — especially how they  might minimize the risk of economic crises. The role of the G7, the World Bank, and the IMF are developed, and policy proposals are provided. Chapter...