New PDF release: The Gods that Failed: How Blind Faith in Markets Has Cost Us

By Larry Eliott, Dan Atkinson

ISBN-10: 1568586027

ISBN-13: 9781568586021

Over the previous 3 a long time, governments have ceded monetary keep watch over to a brand new elite of free-market operatives and their colleagues in nationwide and foreign associations just like the IMF, the area financial institution, and the realm alternate association. They promised financial balance yet have brought chaos. Their hypothesis has left the worldwide economic climate extra prone to a monetary cave in than any time when you consider that 1929.

Two top monetary newshounds dissect this monetary elite, tracing their origins to a secretive amassing of free-market economists in 1947, and suggest a sequence of far-reaching reforms that may keep us from a brand new depression.

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Extra info for The Gods that Failed: How Blind Faith in Markets Has Cost Us Our Future

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Q: Five and six make? A: Eleven. — English children’s playground riddle As a cashier I was particularly inept because I could never get the tills to balance. —adam applegarth, chief executive of Northern Rock, quoted in The Independent on Sunday, September 16, 2007 Celebrating 20 years as a public company has give us the opportunity to reflect on our past success and focus on the drivers of a profitable future. —Bear Stearns annual report, 2006 T hey both had tough, no-nonsense names. They were both institutions that reveled in the idea that they were outsiders, run by people born on the wrong side of the tracks.

There was a sense that with perhaps just one more injection of cash from the Federal 30 t h e g o d s t h at fa i l e d Reserve, the Bank of England, and the European Central Bank, or one more private sector bailout lubricated with a sweetener from the taxpayer, it would be possible to restore confidence to the markets and reopen them for business on lines pretty much unchanged from before. For a time, the high priests seemed to be right. The bailout of the Bear was followed by a three-month spring rally in stock markets and a slight easing of the tension in money markets.

At least four factors lay behind what Krugman calls the great compression: stronger trade unions, sharply progressive taxation, controls on the free movement of capital, and managed trade. A fifth factor, immigration controls, also contributed to rising real incomes of blue-collar workers. From Riot to Market Renaissance: The Legacy of the Year of Living Dangerously At first free market ideas were confined to some well-funded think tanks and the fringes of academic economics. The attempt to revive eighteenth-century liberalism had limited appeal at a time when the New Deal, the welfare state, and other versions of the mixed economy were delivering unprecedented prosperity.

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The Gods that Failed: How Blind Faith in Markets Has Cost Us Our Future by Larry Eliott, Dan Atkinson


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