In the Wake of the Crisis: Leading Economists Reassess Economic Policy
This book collates papers given at an IMF-initiated conference held in March, 2011, in response to the global financial crisis. Over 20 renowned economists and economic policymakers offer succinct analyses and thought-provoking ideas concerning monetary policy, fiscal policy, financial regulation, capital account management, growth models, and the international monetary system.
In the Wake of the Crisis presents a broad picture of what unfolded, highlighting the overlooked interconnectivity of the various branches of decision-making that contributed to, and have been affected by, this systemic failure. Amongst the disparate opinions from diverse fields, one common sentiment emerges: present conceptual frameworks are inadequate. As such, the book urges professional and general readers, alike, to re-examine accepted beliefs about the international monetary system and the underpinning economic models. It also draws lessons from the relatively-speedy recovery of emerging economies to discuss possible growth models that advanced markets could adapt, thereby opening up a dialogue with global implications.
In particular, Nobel Laureate Michael Spence, who is Academic Board Chairman of the Fung Global Institute, and Andrew Sheng, the Institute’s President, underline in their respective articles the importance of sustainable growth, especially in view of the post-crisis performance of emerging markets. Sheng, who focuses on the central role of pragmatism, questions universalism in economic policy, and points out the complexity of adaptive systems and their inherent flexibility. Spence, for his part, highlights the challenges facing developing markets, and their increasing responsibilities not only in sustaining domestic growth, but also in maintaining a sustainable global economy.
In the Wake of the Crisis is an excellent aid to understanding the myriad factors that underlie the global financial crisis that erupted in 2008. More importantly, it provides readers with perspectives that can help them envision and explore “a brave new world”, as Blanchard concludes in the epilogue, where the global economy can continue to grow in a way that benefits players from all sectors.
Edited by Oliver Blanchard, David Romer, Michael Spence and Joseph Stiglitz
Publisher: MIT Press, Cambridge, 2012. For more information, click here.