The Global Financial Crisis : Genesis, Policy Response and Road Ahead

Online-Ressource (XII, 302 p. 33 illus, digital)

Description based upon print version of record

The Global Financial Crisis; Preface; Contents; Part I: The Crisis: Micro-Macro Perspective; Chapter 1: Pathology of the Crisis; The Crisis: Then and Now; US Economy Revives and Skips Depression: Thanks to Keynesian Wisdom; American Economic Boom of 1990s: An Overview; Lower Inflation and Higher Unemployment Thresholds: 2-3-4% Economy; Genesis of Real Estate Boom; Housing and Real Estate: Driver of Economic Growth; Government Initiatives in Housing; Housing and Real Estate Boom: 2002-2007; Role of Debt Securitization in Housing Sales; Favorable Trend in Fed Funds Rate

Keynes Effect (Wealth Effect) and Real Balance EffectWealth Effect, Consumption, and Investment, 1990-2008; Lessons from Theories of Growth and Business Cycles; References; Chapter 2: Subprime Debt Imbroglio: Risks-Rewards of Financial Sophistication; The Backdrop and Genesis of Securitization; Financial Innovation: Mortgage Debt Securitization; Subprime Adjustable Rate Mortgage: Promoting Home Ownership; Pillars of Subprime Debt Securitization; Housing Collapse: The Crisis Trigger; Credit Derivatives and Credit Default Swaps; Indexed Credit Default Swaps (CDS)

Flaws in Risk Management and Collapse of Risk TradingAccounting Fallacy That Triggered the Crisis: Mark-to-Market Versus Fair Valuation Accounting; Interest Rate Shock: Tipping Point for the Crisis; The Niagara Effect; Economic Crisis Causation; Dot-Com Bust Versus Subprime Crisis; What Went Wrong?; Could the Crisis Be Averted?; References; Chapter 3: Policy Response; Economic Wisdom and Political Vision; Quick Policy Response; Economic Policy Measures; Macroeconomic Policy Action; How Did the Fed Do It?; Operation Bailout; Fiscal Stimulus Packages; American Recovery and Reinvestment Act

Troubled Assets Recovery Plan (TARP)Micromanagement: Tackling Corporate and Banking Failures; Specter of Protectionism; Falling Oil Prices: Great Stimulus; G-20 Agenda: Quick Stimulus and More Effective Regulation; Financial Reform (Dodd-Frank) Act and the Volcker Rule; Quantitative Easing 2 (QE 2); Central Banks and Financial Regulators: Countervailing Force Against Market Abnormality; Keynes on Slump and Management of Economic Cycles; Metaphysics of Money and Markets; Keynesianism, Friedman's Monetarism, and Turns in Monetary Policy

Some Fallacies on Interest Rate Policy: Zero Interest Rates, Money Traps, and Interest Rate IllusionInterest Rate Illusion; Zero Interest Rate Policy; Reference; Chapter 4: Why Is the Economy Not Taking-Off?; Monetary Mechanics; Sluggish Investment; Infrastructure: The Growth Driver; Chapter 5: Eurosclerosis: Causation and Control: Euro and Eurozone Management: Lessons from Greek Tragedy; Strong Euro and Worsening BoP; Currency Stability as a Deterrent for Fiscal Profligacy; Dilemma of Common Currency in Pluralistic Community; Part II: Evolutionary Economics: A Systemic View

Chapter 6: Benign Neglect of Dollar: The Bretton Woods and Its Demise

​Part I- The Crisis: Micro-Macro Perspective -- Chapter1- Pathology of the Crisis -- Chapter 2- Sub-Prime Debt Imbroglio : Risks-Rewards of Financial Sophistication -- Chapter 3- Policy Response -- Chapter 4- Why Is the Economy Not Taking Off? -- Chapter 5- Euro-Sclerosis: Causation and Control -- Part II- Evolutionary Economics: A Systemic View -- Chapter 6- Benign Neglect of Dollar: Bretton Woods and its Demise -- Chapter 7- Enter The Globalization : Paradigm Shift -- Chapter 8- Great Crash and Depression : Relook -- Part III- Structural Gaps -- Chapter 9- Metamorphosis of American Capitalism -- Chapter 10- Downfall of Communism : God That Failed -- Chapter 11- Structural Shifts -- Chapter 12- US Savings Gap Vs Global Liquidity Reflux -- Part IV- Looking Ahead -- Chapter 13- Conundrum of Financial Markets : Measuring Risks and Mapping Regulation -- Chapter 14- Rediscovering Keynes -- Chapter 15- New Bretton Woods : Agenda for Global Economic Reform. .

10.1007/978-81-322-0798-6 [DOI]

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