Suchergebnisse

With global finance continuing to play an overpowering role in advanced and developing countries alike, its fragility and instability are today more evident than ever before, especially in light of the recent global crisis followed by a 'Great Recession'. Demolishing the 'efficient growth' doctrine of mainstream economics, this collection of essays maps out an alternative pattern of global finance which can generate real growth with well-being. Covering both advanced as well as 'emerging' economies like China and India, the book provides an incisive analysis of contemporary issues. These include the systemic crisis that is inherent in deregulated global finance, the lack of growth as well as its distributional effects, the emerging pattern of the new global economy with incipient rivalries among nations, and, finally, the hegemonic order of the international financial institutions in the world economy. The volume traces the evolution of global finance over the last half century, and contextualizes the heightened uncertainty on account of speculation in deregulated markets along with crisis and recession in the real economy

Articles chiefly with reference to India

The present volume articulates a state of concern with the destabilising and the growth retarding effects of current world finance relations. Emphasis laid in this volume on finance is justified, not only in terms of its dominance over real activities in the world economy but also with its influence on the pace of economic reforms in the debt-ridden countries. A large number of essays in this volume deals with the recent pattern of capital flows in the world economy. The latter has been of a high priority in the agenda for research in economics in recent times, especially with tendencies for financial fragility in the major financial markets and the enforcing of the structural adjustment programmes in the developing countries as a part of loan conditionalities. The volume provides a rich analysis of contemporary international finance relations, with individual chapters contributed by reputed economists who have made significant contributions to the literature.

China occupies a unique position among developing countries. Its success in achieving relative stability in the financial sector since the institution of reforms in 1979 has given way to relative instability since the beginning of the current global financial crisis. Over the last few years, China has been on a path of capital account opening that has drawn larger inflows of capital from abroad, both foreign-direct and portfolio investment. Of late, a surge in these inflows has introduced problems for the monetary authorities in continuing with an autonomous monetary policy in China, especially with large additions to official reserves, the latter in a bid to avoid further appreciation of the country's domestic currency. Like other developing countries, China today faces the impossible trilemma of managing the exchange rate with near-complete capital mobility and an autonomous monetary policy. Facing problems in devising and sustaining this policy, China has been using expansionary fiscal policy to tackle the impact of shrinking export demand. The recent drive on the part of Chinese authorities to boost real demand in the countryside and to revamp the domestic market shows a promise far different from that of the financial rescue packages in many advanced nations. The close integration of China with the world economy over the last two decades has raised concerns from different quarters that relate both to (1) the possible effects of the recent global downturn on China and (2) the second-round effects of a downturn in China for the rest of world.