The Rise of Finance
Causes, Consequences and Cures

Examines the rise of financialisation globally, charting drawbacks and prescribing suggestions for a definitive overhaul of the structure.

V. Anantha Nageswaran (Author), Gulzar Natarajan (Author)

9781108482349, Cambridge University Press

Hardback, published 23 May 2019

306 pages
23.5 x 16 x 2.2 cm, 0.5 kg

'Two illustrious Indians – V. Anantha Nageswaran and Gulzar Natarajan – with interesting, diverse backgrounds give us an overview – from the tropics as it were – of the role that finance has played in the last several decades. It is lucidly written and thought provoking, the detour into India especially so. The book will richly reward its readers.' Arvind Subramanian, Former Chief Economic Adviser, Government of India

Financialisation, or the disproportionate importance of financial considerations in economic decisions, has been a defining feature of the economic history of the last twenty-five years. The wave of deregulation that accompanied the neoliberal agenda in the US, aided by the dominance of US dollar and American economy, has resulted in the globalisation of finance. This book examines the rise of financialisation globally, while charting its drawbacks and prescribing suggestions for a definitive overhaul of the structure. Bringing together various strands of the latest research and evidence generated in recent years, empirical analysis, and views of reputed experts in the field, it presents a counter-point to the canonical ideas of analysing financial market dynamics and financial globalisation. It proposes a revision of the current monetary policy paradigm to correct its excessive focus on equity markets and their 'wealth effect', embrace a more symmetric response to the economic cycle, and a mandate to focus on financial stability as much as price stability.

List of figures
List of tables and boxes
Foreword
Prologue
Part I. The Causes: 1. Introduction
2. The rise of finance: origins
Part II. The Consequences: 3. Wages, compensation and inequality
4. The monetary policy framework
5. Consequences of unconventional monetary policy
Part III. The Cure: 6. The way forward
7. Finance in India
8. Conclusion
Index.

Subject Areas: Business & management [KJ], Investment & securities [KFFM], Corporate finance [KFFH], Public finance [KFFD], Finance & accounting [KF], International economics [KCL], Macroeconomics [KCB], Economics [KC]