background preloader

Fault Lines...

Facebook Twitter

The Next Crisis. Rajan, R.G.: Fault Lines: How Hidden Fractures Still Threaten the World Economy. Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit.

Rajan, R.G.: Fault Lines: How Hidden Fractures Still Threaten the World Economy.

Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed. Rajan shows how the individual choices that collectively brought about the economic meltdown--made by bankers, government officials, and ordinary homeowners--were rational responses to a flawed global financial order in which the incentives to take on risk are incredibly out of step with the dangers those risks pose. He traces the deepening fault lines in a world overly dependent on the indebted American consumer to power global economic growth and stave off global downturns. Review: More reviews Table of Contents: This book has been translated into: Systemic Malfunctioning of the Labor and Financial Markets.

Paul Jay of the Real News Network interviews Heiner Flassbeck, who served as director of the Division on Globalization and Development Strategies of the United Nations Conference on Trade and Development, known as UNCTAD.

Systemic Malfunctioning of the Labor and Financial Markets

He was a vice minister at the Federal Ministry of Finance in Bonn in 1998 and ’99. He’s now a professor of economics at Hamburg University. I’m going excerpt a bit more heavily than usual, and focus on the financial markets instead of the labor markets. And focus especially on the surreal parts: JAY: [T]he policy is–of course, you know, sets the framework, but it’s the way the economy is built and structured now that you have such policy. At this point, I ought to go all analytical, but I have to confess I’m as bewildered and flummoxed as Soros (and Jay’s tone sounds more than a little puzzled).

Jeffrey Sachs: Well, thank you very much for saying it and practicing it.

What went wrong with finance?

The Shadow Banking System. Economic Theory. Why is macroeconomics such a mess? - 2011 - Events - drop-in-templates - Public events. Global Policy public lecture Date: Monday 10 October 2011 Time: 6.30-8pm Venue: Old Theatre, Old Building Speaker: Professor Lord Eatwell Chair: Professor David Held There is very little agreement across the economics profession as to what macroeconomics actually consists of.

Why is macroeconomics such a mess? - 2011 - Events - drop-in-templates - Public events

Seventy-five years after the publication of Keynes's General Theory this lack of agreement has led to a weak and confused response to the international financial crisis/recession. In this lecture John Eatwell will identify the underlying flaws in much macro-economic analysis and suggest an (uncomfortable) way forward. This event marks the publication of his latest book The Fall and Rise of Keynesian Economics| co-written with Murray Milgate. John Eatwell is President of Queens' College, Cambridge, and a member of the House of Lords. Suggested hashtag for this event for Twitter users: #lsemacro This event is free and open to all with no ticket required.

Twitter and Facebook Accessibility.

The Financialization of the world economy

Structured Finance / Derviatives / Securitization. "free-market" fundamentalism. Who needs regulation? High Frequency Trading. Resources. To sort...