Overall, the international financial authorities have handled this crisis the same way as previous ones: They bailed out the failing institutions and applied monetary and fiscal stimulus. But this cri
We are at the end of an era, but we are not fully aware of it. The two forms of economic organization — State Capitalism and International Capitalism are in competition with each other. Neither of the
The range of currencies included in the SDRs would have to be widened and some of the newly added currencies, which would include the renminbi, may not be fully convertible. Therefore the dollar could
This can be seen in Europe. And if European countries cannot agree among themselves, how can the rest of the world? During the crisis, Europe could not reach a Europe-wide agreement on guaranteeing th
The Chinese leadership would need to be even more far-sighted than President Obama. They are in the driver's seat and if they moved towards a more open society they would have to give up some of t
The Chinese economy is of course much smaller than the United States; with a smaller motor, the world economy is likely to move forward at a slower pace. But within these limits a tectonic shift is ta
Thank you. In these lectures, I have offered a conceptual framework for a better understanding of human events. These events are not determined by timelessly valid scientific laws. Such laws exist, of
This time it may be different, because there has been a shift in power from the regional to the central authorities, and the local officials of the banks are no longer under the control of the local p
The international financial system, as it was reconstructed after the Second World War, did not create a level playing field; it was lopsided by design. The international financial institutions — the
And, as I have tried to show, democracy is in deep trouble in America. The financial crisis has inflicted hardship on a population that does not like to face harsh reality. President Obama has deploye
The globalization of financial markets that took place since the 1980s was a market fundamentalist project spearheaded by the United States and the United Kingdom. Allowing financial capital to move a
As things stand now, the financial system of each country is being sustained and supported by its own government. The governments are primarily with their own economies. This tends to give rise to fin
Fortunately, Europe had the benefit of the social safety net. It held down European growth rates in good times, but it served its purpose in the downturn and the recession in Euroland turned out to be
The United States has been at the center of the international financial system ever since the Second World War. The dollar has served as the main international currency and the United States has deriv
Why should the United States initiate changes in a system of which it had been the main beneficiary? Because the system cannot survive in its present form and the United States has more to lose if it
After the collapse of the Soviet entire the United States emerged as the sole superpower. No other power, or the combination of powers, could challenge it's supremacy. But the unipolar world did n
To sum up, the world is facing a choice between two fundamentally different forms of organization. We may label them international capitalism and state capitalism. The former, represented by the Unite
We are at a moment in which the rage of uncertainties is unusually wide. We have just passed through the worst financial crisis since World War Two. It is quantitatively much larger and qualitatively
Effectively the international (financial) system has a tow-tier structure：Countries that can borrow in their own currency constitute the center, and those, whose borrowings are denominated in one of t
This is what a new Bretton woods conference could accomplish in one fell swoop. It would reconstitute the IMF to better reflect the prevailing pecking order among states and revise its methods of oper
