The Leaderless Economy: Why the World Economic System Fell Apart and How to Fix It

Peter Temin; David Vines

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The Leaderless Economy

Why the World Economic System Fell Apart and How to Fix It

Peter Temin and David Vines

Language: English

Published/Copyright: 2013

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About this book

A new way to understand financial crises—and a blueprint for tomorrow's recovery

The Leaderless Economy reveals why international financial cooperation is the only solution to today's global economic crisis. In this timely and important book, Peter Temin and David Vines argue that our current predicament is a catastrophe rivaled only by the Great Depression. Taking an in-depth look at the history of both, they explain what went wrong and why, and demonstrate why international leadership is needed to restore prosperity and prevent future crises.

Temin and Vines argue that the financial collapse of the 1930s was an "end-of-regime crisis" in which the economic leader of the nineteenth century, Great Britain, found itself unable to stem international panic as countries abandoned the gold standard. They trace how John Maynard Keynes struggled for years to identify the causes of the Great Depression, and draw valuable lessons from his intellectual journey. Today we are in the midst of a similar crisis, one in which the regime that led the world economy in the twentieth century—that of the United States—is ending. Temin and Vines show how America emerged from World War II as an economic and military powerhouse, but how deregulation and a lax attitude toward international monetary flows left the nation incapable of reining in an overleveraged financial sector and powerless to contain the 2008 financial panic. Fixed exchange rates in Europe and Asia have exacerbated the problem.

The Leaderless Economy provides a blueprint for how renewed international leadership can bring today's industrial nations back into financial balance--domestically and between each other.

Author / Editor information

Peter Temin is the Elisha Gray II Professor Emeritus of Economics at the Massachusetts Institute of Technology. His books include Prometheus Shackled, The Roman Market Economy (Princeton), and The World Economy between the World Wars. David Vines is Professor of Economics and a Fellow of Balliol College, University of Oxford. His books include The IMF and Its Critics and The Asian Financial Crisis.

Reviews

"A compact book, brimming with insight, which will prove useful to economists, political scientists, investors and, above all, policy-makers."---Michael Pettis, Economic Record --- "In this timely and important book, Peter Temin and David Vines argue that our current predicament is a catastrophe rivaled only by the Great Depression. Taking an in-depth look at the history of both, they explain what went wrong and why, and demonstrate why international leadership is needed to restore prosperity and prevent future crises." --- "Temin and Vines . . . offer a thoughtful exploration of the situation of the world financial system through detailed analysis and comparisons of the recent international economic crisis with circumstances during the Great Depression. . . . The book is a great resource for those interested in international economics and history. A must read for upper-division undergraduate students, business leaders, and future policy makers, and a pleasure for graduate students, faculty, and general readers." --- "You can learn a lot by reading [The Leaderless Economy]. . . . The authors are commendably alert throughout to the economic and political complexities involved."---Daniel Akst, Bloomberg News --- "In The Leaderless Economy, Temin and Vines demonstrate that Keynes' economic theories remain robust and relevant. . . . [T]heir book provides a clear and compelling analysis of the roots of our global financial crisis and the lessons we can learn from it."---Glenn C. Altschuler, Huffington Post --- "[The Leaderless Economy] presents sensible arguments in favour of a rebalanced world economic system."---Tony Barber, Financial Times --- "A rigorous analysis of the collapse of the world economy in 2008--and why things don't seem to be getting better. . . . [S]obering." --- "[T]emin and Vines's measured analysis will reward serious readers and economists who can keep up with global theory in motion." --- "One of Choice's Outstanding Academic Titles for 2013"

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Frontmatter
i

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CONTENTS
vii

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PREFACE
ix

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ONE. The World Economy Is Broken
1

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TWO. The British Century and the Great Depression
21

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THREE. Keynes from the Macmillan Committee to Bretton Woods
59

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FOUR .The American Century and the Global Financial Crisis
107

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FIVE. Restoring International Balance in Europe
151

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SIX. Restoring International Balance in the World
205

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SEVEN. Using Theory to Learn from History
243

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APPENDIX
257

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NOTES
275

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REFERENCES
283

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INDEX
299

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Publishing information

Pages and Images/Illustrations in book

eBook published on:

June 16, 2015

eBook ISBN:

9781400846641

Edition:

Course Book

Pages and Images/Illustrations in book

https://doi.org/10.1515/9781400846641

eBook ISBN: 9781400846641

Keywords for this book

Exchange rate; Interest rate; Financial crisis of 2007–08; Unemployment; World economy; Macroeconomics; Inflation; Economy; Currency; Central bank; Fiscal policy; Monetary policy; Tax; Economic growth; Recession; Income; Investment; Economic policy; Financial crisis; Saving; Current account; Devaluation; Economics; Economist; Policy; Deflation; Investor; Marshall Plan; Eurozone; Supply (economics); Balance of trade; Government debt; Payment; Debt; Bretton Woods system; Employment; Depreciation; Keynesian economics; European debt crisis; John Maynard Keynes; International monetary systems; Globalization; Tariff; Competitiveness; Government bond; Deficit spending; Bank of England; Private sector; Tax revenue; Aggregate demand; Bank; International trade; External debt; Asset; Economic history; Developed country; Foreign direct investment; Government budget balance; Balance of payments; Western Europe; Government spending; Risk premium; Monetary authority; Consumer; James Meade; Industrialisation; International Monetary Fund; Currency crisis; Capital control; Austerity

Audience(s) for this book

For an expert adult audience, including professional development and academic research

The Leaderless Economy

Overview

About this book

Author / Editor information

Reviews

Topics

Table of contents

Frontmatter

CONTENTS

PREFACE

ONE. The World Economy Is Broken

TWO. The British Century and the Great Depression

THREE. Keynes from the Macmillan Committee to Bretton Woods

FOUR .The American Century and the Global Financial Crisis

FIVE. Restoring International Balance in Europe

SIX. Restoring International Balance in the World

SEVEN. Using Theory to Learn from History

APPENDIX

NOTES

REFERENCES

INDEX

Bibliographic data