We are at the end of an era, but we are not fully aware of it. The two forms of economic organization State Capitalism and International Capitalism are in competition with each other. Neither of them is attractive. The Washington Consensus has failed...
This time it may be different, because there has been a shift in power from the regional to the central authorities, and the local officials of the banks are no longer under the control of the local provincial authorities but success cannot be taken...
The Chinese economy is of course much smaller than the United States; with a smaller motor, the world economy is likely to move forward at a slower pace. But within these limits a tectonic shift is taking place between the United States and China wit...
For the West (in general), and the United States in particular，the crisis was an internally generated event, which led to the collapse of the financial system. For China, it was an external shock which hurt exports but left the financial, political...
The United States has been at the center of the international financial system ever since the Second World War. The dollar has served as the main international currency and the United States has derived immense benefits from that position but lately...
Fortunately, Europe had the benefit of the social safety net. It held down European growth rates in good times, but it served its purpose in the downturn and the recession in Euroland turned out to be less severe than expected. Now that the fears of...
This can be seen in Europe. And if European countries cannot agree among themselves, how can the rest of the world? During the crisis, Europe could not reach a Europe-wide agreement on guaranteeing the financial system; each country had to guarantee...
As things stand now, the financial system of each country is being sustained and supported by its own government. The governments are primarily with their own economies. This tends to give rise to financial protectionism, which threatens to disrupt a...
The globalization of financial markets that took place since the 1980s was a market fundamentalist project spearheaded by the United States and the United Kingdom. Allowing financial capital to move around freely in the world made it difficult to tax...
Overall, the international financial authorities have handled this crisis the same way as previous ones: They bailed out the failing institutions and applied monetary and fiscal stimulus. But this crisis was much bigger and, at first, the same techni...
