Meghnad Desai Concepts

Global Governance and Financial Crises

by Meghnad Desai and Yahia Said · 12 Nov 2003

recent developments in analytical economic theory. Students, researchers and policy makers would do well to read it and learn some important lessons for the future. Meghnad Desai is Director of the Centre for the Study of Global Governance and Professor of Economics at the London School of Economics. He is also author

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the Modern World Economy Edited by MoonJoong Tcha Global Economic Institutions Willem Molle Global Governance and Financial Crises Edited by Meghnad Desai and Yahia Said Global Governance and Financial Crises Edited by Meghnad Desai and Yahia Said First published 2004 by Routledge 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA

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Street, New York, NY 10001 Routledge is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2004. © 2004 Meghnad Desai and Yahia Said for selection and editorial matter; individual contributors for their chapters All rights reserved. No part of this book may be reprinted or

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catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Desai, Meghnad. Global governance and financial crises / Meghnad Desai and Yahia Said. p. cm. – (Routledge studies in the modern world economy ; 40) Includes bibliographical references and index. 1. Developing countries–Economic conditions. 2. Financial

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–2 (Print Edition) 2003046537 Contents List of figures List of tables List of contributors 1 Introduction viii x xi 1 MEGHNAD DESAI AND YAHIA SAID 2 Financial crises and global governance 6 MEGHNAD DESAI 3 Asset price bubbles and monetary policy 19 FRANKLIN ALLEN AND DOUGLAS GALE 4 The International Monetary Fund: past and

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. He received his doctorate from Oxford University. Dr Allen’s main areas of interest are corporate finance, asset pricing, financial innovation and comparative financial systems. Meghnad Desai is Professor of Economics, Director of the Centre for the Study of Global Governance and Chairman of the Asia Research Centre at the London School

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with the Helsinki Citizens’ Assembly in Prague. Yahia Said specialises in issues of economic transition and security in post-totalitarian societies. His publications include with Meghnad Desai ‘Money and the global civil society: the new anti-capitalist movement’, in Anheier, Glasius and Kaldor (eds), Global Civil Society 2001 (OUP 2001), and with

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Yash Ghai and Mark Lattimer, Building Democracy in Iraq (Minority Rights Group 2003). 1 Introduction Meghnad Desai and Yahia Said The new century is barely three years old and many of the certainties of the last century are being re-examined. During

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explores the term ‘crisis’ and finds parallels between the medical and financial use of the words. Crises in both areas indicate (a) a turning 2 Meghnad Desai and Yahia Said point (b) a sudden and (c) precipitous drop in most indicators. It also may have benevolent characteristics by purging the system of

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streamlining its portfolio of financial products and working closely with the private sector to share risks and strengthen international supervision. The IMF should work 4 Meghnad Desai and Yahia Said through national central banks or directly as a crises manager/lender of last resort. Aglietta is not proposing the IMF as a

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should be targeted at expanding domestic lending for consumption and investment, sterilisating inbound financial flows and changing their composition. 2 Financial crises and global governance Meghnad Desai Introduction There have been financial crises for 175 years, at least. At first they had national origin and reach but even in the nineteenth century

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fevered body. The physician notices a crisis when there is an abrupt, that is, sudden and unanticipated, fall in temperature (see Box 2.1). 8 Meghnad Desai Box 2.1 Definitions Crisis The turning point of an illness, formerly used particularly in respect of fevers: an abrupt fall in temperature was termed

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work through a capitalist economy (Schumpeter 1940). Crises signal a slowing down of the economy as it gets back to a new stationary state. 10 Meghnad Desai Modern theories rely on Keynes’s General Theory (Keynes 1936). Keynes did not have a theory of cycles but he did have a view on

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led to the failure of an offering by Buenos Aires Drainage and Waterworks Company of £3.5 million in November 1888. This forced Baring 12 Meghnad Desai Brothers to lend to Argentina on acceptance credits. The Argentine government could not service the debt as a result of falling raw material prices in

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to do. The result was that the USA did not manage its affairs very effectively and the system of fixed exchange rates had to 14 Meghnad Desai be abandoned in August 1971. After the abandonment of the fixed exchange rate system, the IMF turned its attention to the developing countries and their

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international financial system. In February 1999, the Financial Stability Forum was established by the G7 to attain ‘a better understanding of the sources of 16 Meghnad Desai systemic risk … ensure that international rules and standards of best practice are developed … ensure consistent international rules … and a continuous flow of information amongst authorities

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. (1959) ‘The dynamic properties of the Klein-Glodbeger Model’, Econometrica, XXVII, October. Allen, F. and Gale, D. (2003) ‘Asset price bubbles and monetary policy’, in Meghnad Desai and Yahia Said (eds), Global Governance and Financial Crises, Routledge, London. Financial crises and global governance 17 Baranzini, M. and Cencini, A. (1996) Inflation and

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: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process, Porcupine Press, Philadelphia. Shiller, R. J. (2000) Irrational Exuberance, Princeton University Press, Princeton, NJ. 18 Meghnad Desai Skott, Peter (1995) ‘Financial innovation, deregulation and Minsky cycles’, in G. A. Epstein and H. M. Gintis (eds) pp. 255–273. Soros, G. (1998) Towards

Hubris: Why Economists Failed to Predict the Crisis and How to Avoid the Next One

by Meghnad Desai · 15 Feb 2015 · 270pp · 73,485 words

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.Robert Lucas, “In Defence of the Dismal Science,” The Economist, August 6, 2009. 5.I have dealt with the theories of Marx and Hayek in Meghnad Desai, Marx’s Revenge: The Resurgence of Capitalism and the Death of Statist Socialism (Verso, London, 2002). 6.Lord Overstone, “Reflections Suggested by a Perusal of

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, 1832, in Selection of Reports and Papers of the House of Commons: Banking – Currency, vol. 30 (House of Commons, 1832), p. 467, para. 5758. 3.Meghnad Desai, Marx’s Revenge: The Resurgence of Capitalism and the Death of Statist Socialism (Verso, London, 2002). 4.Karl Marx and Friedrich Engels, The Communist Manifesto

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Palgrave Dictionary of Economics (Macmillan, London, 1987). 3 New Tools for a New Profession 1.For Irving Fisher and the quantity theory of money, see Meghnad Desai, Testing Monetarism (Pinter, London, 1981). 2.Pigou’s money demand equation is discussed in Desai, Testing Monetarism. 3.Arthur C. Pigou, The Economics of Welfare

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the Commission on Money and Credit (Prentice-Hall, Englewood Cliffs, NJ, 1963). 14.The debate between Friedman-Meiselman and their Keynesian rivals is described in Meghnad Desai, Testing Monetarism (Pinter, London, 1981). 15.A. W. H. Phillips, “The Relationship between Unemployment and the Rate of Change of Money Wage Rates in the

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Growth Cycle,” in C. H. Feinstein, ed., Capitalism, Socialism and Economic Development: Essays in Honour of Maurice Dobb (Cambridge University Press, Cambridge, 1967). See also Meghnad Desai, “Growth Cycles and Inflation in a Model of the Class Struggle,” Journal of Economic Theory (Dec. 1973), republished in The Selected Essays of

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Meghnad Desai, vol. 1: Macroeconomics and Monetary Theory (Edward Elgar, Cheltenham, 1995). 4.For a comparison of Hayek and Marx, see Meghnad Desai, “Hayek and Marx,” in E. Feser, ed., The Cambridge Companion to Hayek (Cambridge University Press

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Options and Corporate Liabilities,” Journal of Political Economy, 81.3 (May–June 1973): 637–54. 6 The New Globalization 1.For some historical background, see Meghnad Desai, Marx’s Revenge: The Resurgence of Capitalism and the Death of Statist Socialism (Verso, London, 2002). 2.For background on the Asian crisis see Julia

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Twenty-First Century (Belknap Press, Cambridge, MA, 2014), see figure 6.1, p. 200; figure 6.2, p. 201; figure 8.5, p. 291. 2.Meghnad Desai, “An Econometric Model of the Share of Wages in National Income: UK 1855–1965” (1984), republished in The Selected Essays of

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Meghnad Desai, vol. 1: Macroeconomics and Monetary Theory (Edward Elgar, Cheltenham, 1995). 3.Andrew Glyn and Robert Sutcliffe, “The Collapse of UK Profits,” New Left Review, 66 (

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the Death of Statist Socialism. Verso, London, 2002. Desai, M., “Saving Capitalism from Its Friends,” Guardian, Sept. 19, 2008. Desai, M., The Selected Essays of Meghnad Desai, vol. 1: Macroeconomics and Monetary Theory. Edward Elgar, Cheltenham, 1995. Desai, M., Testing Monetarism. Pinter, London, 1981. Desai, M., “Who’d Be a Keynesian?” Guardian

Rethinking Islamism: The Ideology of the New Terror

by Meghnad Desai · 25 Apr 2008

R E T H I N K I NG ฀ I SL A M I S M ‘Meghnad฀Desai฀has฀given฀us฀a฀much฀needed฀guide฀to฀the฀ complex฀role฀of฀Islam฀in฀current฀geopolitical฀conﬂicts.฀Bringing฀ together฀a฀wealth฀of฀historical฀knowledge฀with฀

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฀of฀European฀Thought฀ ฀at฀the฀London฀School฀of฀Economics฀and฀author฀of฀ ฀Al฀Qaeda฀and฀What฀It฀Means฀To฀Be฀Modern฀(Faber) ‘Like฀Maynard฀Keynes,฀Meghnad฀Desai฀is฀so฀much฀more฀than฀ an฀economist.฀He฀has฀something฀arresting฀and฀original฀to฀say฀on฀ almost฀any฀subject,฀and฀in฀this฀book฀he฀has

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.ibtauris.com In฀the฀United฀States฀and฀Canada฀distributed฀by฀Palgrave฀Macmillan,฀ a฀division฀of฀St.฀Martin’s฀Press,฀฀Fifth฀Avenue,฀New฀York,฀฀ Copyright฀©฀Meghnad฀Desai฀ The฀right฀of฀Meghnad฀Desai฀to฀be฀identiﬁed฀as฀the฀author฀of฀this฀work฀฀ has฀been฀asserted฀by฀him฀in฀accordance฀with฀the฀Copyright,฀฀ Designs฀and฀Patents฀Act

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฀the฀Umayyads.’฀Patricia฀Crone฀and฀Martin฀Hinds,฀ God’s฀Caliph,฀Cambridge฀University฀Press,฀Cambridge,฀,฀p.฀. ฀ .฀ There฀is฀a฀vast฀literature฀on฀the฀Russian฀Revolution.฀See฀Meghnad฀ Desai,฀ Marx’s฀ Revenge:฀ The฀ Resurgence฀ of฀ Capitalism฀ and฀ the฀ Death฀ of฀ Statist฀Socialism,฀Verso,฀London,฀.฀ ฀ .฀ There฀ are฀ many฀ references.฀ See฀ among฀ others฀ François฀ Furet,฀ The

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฀ Jihadist,฀ Read฀ Anarchist’,฀The฀Economist,฀฀August฀. ฀.฀ Among฀ the฀ many฀ books฀ Burke,฀ Al฀ Qaeda,฀ is฀ the฀ one฀ I฀ have฀ found฀ most฀useful. ฀.฀ For฀some฀discussion฀see฀Meghnad฀Desai฀and฀Yahya฀Said฀(eds),฀Financial฀Crises฀and฀Global฀Governance,฀Routledge,฀London,฀. ฀.฀ Voting฀in฀IMF฀and฀the฀World฀Bank฀is฀weighted฀by฀the฀initial฀contributions฀of

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฀literature,฀see฀the฀entries฀by฀Ernest฀Gellner฀on฀Nation฀and฀Nationalism฀in฀ William฀ Outhwaite฀ (ed.),฀ The฀ Blackwell฀ Dictionary฀ of฀ Modern฀ Social฀ Thought,฀Blackwell,฀Oxford,฀.฀ ฀.฀ See฀Meghnad฀Desai,฀Development฀and฀Nationhood:฀Essays฀on฀the฀Political฀ Economy฀ of฀ South฀ Asia,฀ Oxford฀ University฀ Press,฀ Delhi,฀ ,฀ for฀ discussion฀of฀national฀problems฀in฀South฀Asia. ฀.฀ Avi฀Shlaim

Marxian Economic Theory

by Meghnad Desai · 20 May 2013

LECTURES IN ECO~GMfCS - Marxian Economic Theory Meghnad Desai LO/ldO/l School of Ecollomics a/ld Political Scie/lce GRAY-MILLS PUBLISHING LTL IQ Jucr Strcct London S .W. I I © Mr.~/I/

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versions and improved it in several ways. I am also grateful to Geraldine Preece, Carol Martin and Arule de Sayrah for typing the earlier versions. Meghnad Desai LondOn SchooZ of Economics, Z97J ii IC} Sale of labour power and p,Jrchase of wage aood. by labourers I} ,i. MP: i {CI W

GDP: The World’s Most Powerful Formula and Why It Must Now Change

by Ehsan Masood · 4 Mar 2021 · 303pp · 74,206 words

of Cambridge class in particular that would have left any editor of its alumni magazine CAM spoilt for choice. The economics class of 1953 had Meghnad Desai, now Labour member of the UK House of Lords. It had Nobel Prize-winning economist Amartya Sen, and last but not least, there was Pakistan

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’s thesis, those countries recording the biggest gains in life expectancy and education are not necessarily those with the biggest increases in economic growth rates. Meghnad Desai and Richard Jolly both say that few if any members of the project team, with the exception of Haq, anticipated the level of attention the

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Maurice Strong who helped me to reconstruct the 1972 Stockholm environment conference and to Roberto Peccei who spoke movingly about his late father Aurelio. Lord Meghnad Desai, Bill Draper, Sir Richard Jolly and Frances Stewart illuminated the early years of the Human Development Index and Richard especially provided detailed comments on an

When China Rules the World: The End of the Western World and the Rise of the Middle Kingdom

by Martin Jacques · 12 Nov 2009 · 859pp · 204,092 words

it now appears, warts and all. I would like to express my gratitude to Tony Giddens, former director of the London School of Economics, and Meghnad Desai, then chairman of the Asia Research Centre, who arranged for me to become a visiting research fellow at the Centre in 2004, a connection which

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pp. 215-25. 79 . Bin Wong, China Transformed, pp. 164, 170-73. 80 . Cohen, Discovering History in China, p. 135. 81 . Ibid., p. 132. 82 . Meghnad Desai, ‘India and China: An Essay in Comparative Political Economy’, seminar paper, Asia Research Centre, London School of Economics, 2003, p. 5; revised version available to

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the West’, Financial Times, 27 August 2008; Bobo Lo, ‘Russia, China and the Georgia Dimension’, Centre for European Reform Bulletin, 62 (October/November 2008). 83 . Meghnad Desai, ‘India and China: An Essay in Comparative Political Economy’, seminar paper, Asia Research Centre, London School of Economics, 2003, p. 3; revised version available to

The Classical School

by Callum Williams · 19 May 2020 · 288pp · 89,781 words

£10,000. The starting salary in the engineering service was £420 a year or about sixty times the average income of the Indian labour force.” Meghnad Desai, another economist, reckons that during Naoroji’s time, roughly half of the financial transfers from India to Britain could be considered “unrequited”. Why was that

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which Sir William Petty would have been proud of. He was the first person, in 1867, to estimate India’s GDP. I am grateful to Meghnad Desai for the insight that the drain could be put instead towards investment. 5. Desai laments the “the nationalist logic [which] saw all foreign trade and

How Much Is Enough?: Money and the Good Life

by Robert Skidelsky and Edward Skidelsky · 18 Jun 2012 · 279pp · 87,910 words

part of drafts of How Much Is Enough? and, by their comments and criticisms, helping to improve its arguments: Perry Anderson, Tony Bicat, Carmen Callil, Meghnad Desai, Robin Douglass, Pavel Erochkine, Richard Fynes, Peter Pagan, Pranay Sanklecha, Richard Seaford, Augusta Skidelsky, Will Skidelsky and Wu Junqing. We thank Pete Mills and Christian

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, neither points to the collapse of capitalism, rather to its ability to rescue itself from internal crises, notably through globalization. As Marx’s modern commentator Meghnad Desai writes, “Marx fails to come up with a single story about the dynamics of capitalism that in any way predicts—even with various conditions attached

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, “Capital,” in Marx: Collected Writings (London: Lawrence and Wishart, 1974), pp. 714–15. 36. Marx and Engels, The Communist Manifesto, p. 10. 37. Quoted in Meghnad Desai, Marx’s Revenge: The Resurgence of Capitalism and the Death of Statist Socialism (London: Verso, 2004), p. 95. 38. Ibid., p. 79. 39. Quoted ibid

Big Three in Economics: Adam Smith, Karl Marx, and John Maynard Keynes

by Mark Skousen · 22 Dec 2006 · 330pp · 77,729 words

Z. Foster in 1949, Michael Harrington in 1977, and Boris Kagarlitsky in 2000). They all predicted the imminent collapse of the capitalist system. However, Lord Meghnad Desai, an economist at the London School of Economics, recently proposed the startling thesis that Marx would have supported the resurgence of capitalism around the world

Railways & the Raj: How the Age of Steam Transformed India

by Christian Wolmar · 3 Oct 2018 · 375pp · 109,675 words

Mark Tully, ‘A View of the History of Indian Railways’, in Srinivasan, Tiwari and Silas (eds.), p. 235. 24 John Hurd in Dharma Kumar and Meghnad Desai (eds.), The Cambridge Economic History of India, vol. 2, c.1751–c.1970, Cambridge University Press, 1983, p. 751. 25 J. N. Sahni, Indian Railways