The Financial Crisis

1. Front Matter

   Pages i-xiv

   PDF

2. Introduction

   • Philip Arestis, Rogério Sobreira, José Luis Oreiro

   Pages 1-11

3. The Lessons from the Current Crisis for Macro-theory and Policy

   • Philip Arestis, Elias Karakitsos

   Pages 12-38

4. The Conventional Views of the Global Crisis: A Critical Assessment

   • Emiliano Brancaccio, Giuseppe Fontana

   Pages 39-62

5. The Global Crisis and the Governance of Power in Finance

   • Gary A. Dymski

   Pages 63-86

6. Income Distribution and Borrowing: Growth and Financial Balances in the US Economy

   • Gennaro Zezza

   Pages 87-113

7. Re-structuring the Financial Sector to Reduce its Burden on the Economy

   • Malcolm Sawyer

   Pages 114-136

8. Regulate Financial Systems, or Financial Institutions?

   • Costas Lapavitsas

   Pages 137-159

9. Institutional Investment and Financial Regulation: An International Comparison

   • Ramona Meyricke

   Pages 160-186

10. Rethinking the Lending of Last Resort Function: A Historical and Contemporary Perspective

    • Germana Corrado

    Pages 187-210

11. The Necessity of Reforming the International Monetary System

    • Fernando Ferrari-Filho

    Pages 211-233

12. Neoliberalism, Income Distribution and the Causes of the Crisis

    • Engelbert Stockhammer

    Pages 234-258

13. Back Matter

    Pages 259-268

    PDF

The 2008 financial crisis poses three fundamental questions for economists and policy makers; understanding the origins of the crisis, understanding the consequences of this crisis for the world economy, and finally understanding why the 2008 financial crisis is not as serious as the 1929 crisis. The prevailing view is that the 2008 financial crisis was solely the result of inadequate financial regulation together with a very loose monetary policy conducted by central banks, especially the Fed. It is believed that this crisis is a temporary detour in the normal course of the events, so that in the near future capitalist economies will resume the high growth path observed before the crisis. In terms of the third question, there is a widespread view that the fundamental reason that explains the avoidance of the harmful experiences of 1929 was the fiscal and monetary policy expansions in developed countries. No important role is assigned to developing countries in terms of the effects of the financial crisis. This book challenges the prevailing orthodoxy surrounding the origins and the consequences of the 2008 financial crisis. The book demonstrates that measures in addition to a profound change in the financial regulation are required if a new financial crisis is to be avoided in the future, measures include: a change in the conduct of economic policy; a reform of the national and international monetary systems; and a radical change in the pattern of income distribution. This book is essential reading for all interested in macroeconomics, monetary policy, development economics and the global impact of the financial crisis.

• distribution
• economy
• finance
• financial crisis
• growth
• income distribution
• institutions
• investment
• regulation
• science and technology

• Cambridge Centre for Economics and Public Policy, Department of Land Economy, University of Cambridge, UK

  Philip Arestis

• Department of Applied Economics V, Universidad del País Vasco, Spain

  Philip Arestis

• Department of Economics, University of Utah, USA

  Philip Arestis

• Levy Economics Institute, New York, USA

  Philip Arestis

• Leeds Business School, University of Leeds, UK

  Philip Arestis

• Department of Finance and Management Studies, School of Oriental and African Studies (SOAS), University of London, UK

  Philip Arestis

• UK Government Economic Service (GES) on Professional Developments in Economics, UK

  Philip Arestis

• Brazilian School of Public and Business Administration, Getulio Vargas Foundation and CNPq Researcher, Brazil

  Rogério Sobreira

• University of Brasilia (UnB), Brazil

  José Luis Oreiro

• National Scientific Council (CNPq), Brazil

  José Luis Oreiro

• Brazilian Keynesian Association (AKB), Brazil

  José Luis Oreiro

• Brazilian Journal of Political Economy (REP), Brazil

  José Luis Oreiro

EMILIANO BRANCACCIO University of Sannio, Italy GERMANA CORRADO University of Rome, Italy GARY DYMSKI University of California, US FERNANDO FERRARI-FILHO Federal University of Rio Grande do Sul, Brazil GIUSEPPE FONTANA University of Leeds, UK ELIAS KARAKITSOS Guildhall Asset Management, UK COSTAS LAPAVITSAS University of London, UK MALCOLM SAWYER University of Leeds, UK ENGELBERT STOCKHAMMER Kingston University, UK GENNARO ZEZZA University of Cassino, Italy

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