From Asian to Global Financial Crisis

This is a unique insider account of the new world of unfettered finance by Andrew Sheng, President of the Fung Global Institute. Formerly a regulator in Asia, he examines how old mindsets, market fundamentalism, loose monetary policy, carry trade, lax supervision, greed, cronyism, and financial engineering caused both the Asian crisis of the late 1990s and the global crisis of 2008–2009.

This book shows how the Japanese zero interest rate policy to fight deflation helped create the carry trade that generated bubbles in Asia whose effects brought Asian economies down. The study's main purpose is to demonstrate that global finance is so interlinked and interactive that our current tools and institutional structure to deal with critical episodes are completely outdated. The book explains how current financial policies and regulation failed to deal with a global bubble and makes recommendations on what must change.

Andrew Sheng:

- Shows how the current financial crisis re-creates the Asian financial crisis of the late 1990s

- Explains how the yen “carry trade” and financial engineering helped create the 2008-9 global meltdown

- Details why a global market of unfettered finance with regulation trapped in national “silos” was an accident waiting to happen.

Publisher: Cambridge University Press, New York, 2009. For more information,Click here