Getting ready for ‘capitalism’s next crisis’?
Ten years ago, politicians and central bankers were struggling to defend the global financial system after years of loose selling, lax regulation, risk aversion, and a culture of greed, complacency and the uncritical embrace of a version of globalisation threatened it with collapse. Ten years later, we are still living with the consequences. Central banks are only now cautiously beginning to drain liquidity from the financial system and re-price capital. Social and economic inequalities blight developed and developing economies. Populist movements, fuelled by the resentments of the ‘left behinds’ and those who feel their very identities are threatened by unfettered trade and financial flows and the elites who champion them, have either captured power or seem close to doing so. So, what have we learned about both the causes and the consequences of financial crises? More importantly, are we ready for the next one?
- How resilient is the global financial system after generous rescues and tighter regulation?
- Have our crisis-prediction skills improved?
- Will the world act collectively when the ‘next crisis’ comes?