Global Finance After the Crisis
Show Less

Global Finance After the Crisis

The United States, China and the New World Order

Richard A. Iley and Mervyn K. Lewis

This thought-provoking book addresses challenging questions raised in light of the aftermath of the global financial crisis that saw an accelerated rise in the economic growth of China and other emerging market economies, while the US, Japan and Europe have laboured under the great recession.
Buy Book in Print
Show Summary Details

Chapter 9: Conclusions

Richard A. Iley and Mervyn K. Lewis

Extract

Table 9.1 summarizes the main themes explored in the book and the supporting material assembled. As the title indicates, the volume is concerned with the post-crisis world. Yet it has not been possible (or desirable) to avoid an analysis of the crisis and the ‘great recession’, if only because of the length of the shadow these events cast over the world economy today. Speaking in Hong Kong on 19 March 2012, IMF Deputy Director Zhu Min observed that if one adds together the household debts, the corporate debts, the financial sector debts and the government debts, the total debts amongst the developed countries vary between 300 per cent and 600 per cent of GDP. Dr Zhu went on to add that debts are ‘way too high’ and that in this respect the world economy is not in a classic financial crisis but a ‘deleveraging process’, moreover one in which economies are seeking to engineer growth while also deleveraging (Garvey, 2012). In the ‘great slump’ of the 1930s, the United States underwent ‘debt deflation’, in the words of Irving Fisher (1933), with the epicentre being the United States and its banking system. In the current situation, the epicentre of the crisis and downturn was again the United States and its banking system, but the pain of ‘too high’ debt has been borne across the developed world.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.