Global Financial Systems

This book is suitable for both undergraduate and masters students, and the book has been used successfully in a masters course at the London School of Economics, FM 447, Global Financial Systems.

The book uses economic theory, finance, mathematical modelling, risk theory, and policy to posit a comprehensive, coherent and current economic analysis of the inherent instabilities of the financial system, and the design of optimal policy response. The book contains an up-to-date and thorough analysis of the 2007/08 financial crisis, the subsequent changes in financial regulations and government policy. It concludes with analysis of the ongoing European sovereign debt crisis.

Key questions:

• Under what circumstances have we achieved financial stability?
• Which previous crises inform the current ones and in what way?
• Impact of the Trump Tarrifs
• Inflation and stability
• What are the common themes and lessons for policy, regulation and financial theory?
• Financial regulations — macro prudential policy
• Financial markets and instruments
• Politics, China, Europe, US, Brexit, Italy, Trump
• Foreign exchange
• Fintech, blockchain, cryptocurrencies, smart contracts
• Liquidity
• Sovereign debt (crises)
• Interest rate normalization
• Inequality

Reviews

Nicely and clearly written for an undergraduate audience…the book has a fresh perspective that will differentiate it from pre-crisis texts

Professor Goodhart, Professor Emeritus, London School of Economics

Global Financial Systems: Stability and Risk, looks to be an important book… it will appeal to those interested in regulation as well as those more on the regulatory side.

Professor Caprio, William Brough Professor of Economics at Williams College and Chair, Center for Development Economics