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Globalisation Sets the Background to the Crisis

  • Adrian Blundell-Wignall
  • Paul Atkinson
  • Caroline Roulet
Chapter

Abstract

The authors explain globalisation and provide an interesting history of its various stages—including reasons why emerging countries turned away from the advanced nations as a model for economic development. Turning to recent decades, they counterpose two very different parts of the world economy that have begun to butt-up against each other. Topics such as the China saving glut, exchange rate management and foreign buying of US securities, subsidies to state-owned enterprises (SOEs), rising Chinese import penetration following WTO entry and the creative destruction technological responses of large companies are brought together as key preconditions for the 2008 crisis. With new empirical evidence, they link these developments to the hollowing out of jobs, low inflation, the price of US treasuries, mortgages rates and asset price inflation.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Adrian Blundell-Wignall
    • 1
  • Paul Atkinson
    • 2
  • Caroline Roulet
    • 3
  1. 1.University of Sydney and OECD (consultant advisor to the Secretary General, and former Director of the Financial and Enterprise Affairs Directorate)ParisFrance
  2. 2.NHA Economics, Ltd.ParisFrance
  3. 3.Organisation for Economic Co-operation and DevelopmentParisFrance

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