International finance has always been one of the more elusive areas of economics, in part because the channels through which capital moves around the world are so tortuous that the system looks as if it had been thought up by Rube Goldberg. It’s not surprising, therefore, that among all the various forces and factors to be blamed for the current global economic crisis — deregulation, Alan Greenspan, credit-default swaps, the power of the financial lobby, excessive leverage, securitization, Wall Street greed — the most difficult to get one’s head around is the international monetary system.
The rest is a well written essay worth reading.
1 comment:
I have read a review of that book which says that bankers put lots of money in market and it broke down. I hope it will not happen this time. Well nice post.
Financial Chronicle
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