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A decade of speculation

Published online by Cambridge University Press:  01 January 2023

CP Chandrasekhar  and
Jayati Ghosh
CP Chandrasekhar
Affiliation:
Jawaharlal Nehru University, India
Jayati Ghosh*
Affiliation:
Jawaharlal Nehru University, India
*
Jayati Ghosh, Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University, New Mehrauli Road, New Delhi 110067, India. Email: [email protected]
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Abstract

The power of finance ensured that, other than for an initial fiscal push to salvage financial institutions, monetary measures in the form of quantitative easing, involving the infusion of large volumes of cheap liquidity, were the principal response to the 2008 global financial crisis. The effects of the generalised and prolonged dependence on such measures have been a substantial increase in vulnerability, at the centre of which is a huge build-up of private – especially corporate – debt, and unwarranted and unsustainable asset price inflation in both developed country and ‘emerging economy’ markets. A consequence of these processes is a massive increase in income and wealth inequality across the world, which limits the level of effective demand and growth.

Keywords

E44E52E58G01G15Asset marketsfinancial fragilitymacroeconomic policyprivate debtquantitative easing
Type
Symposium: The Global Financial Crisis Ten Years On
Information
The Economic and Labour Relations Review , Volume 29 , Issue 4: Symposia: Global Financial Crisis 10 Years On; Full Employment White Paper , December 2018 , pp. 410 - 427
Copyright
© The Author(s) 2018

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