The global financial system, this book argues, is in turmoil. Financial liberalization has led to phasing out of regulatory mechanisms over the movement of huge sums involved in currency speculations, new financial products, offshore financial centers, secretive hedge funds and ‘hot money’ flows to emerging markets. The result is a degree of volatility in financial markets which threatens the orderly running of national economies. This book explains and analyses the constantly changing and complex world of global financial flows, and calls for radical reforms in a system that is now more susceptible to the whims of market sentiment than the economic policies of governments. The author enunciates certain guiding principles in order to create a more stable international financial architecture and recommends a series of concrete measures.
