''Fixing Global Finance'' is a book written by ''

Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Jap ...

'' columnist

Martin Wolf Martin Harry Wolf (born 16 August 1946 in London) is a British journalist who focuses on economics. He is the chief economics commentator at the ''Financial Times''. He also writes a weekly column for the French newspaper ''Le Monde''. Earl ...

. It discusses the relationship between global imbalances and

financial crises A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with Bank run#Systemic banki ...

, and offers several personal proposals to restore

economic An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...

balances.Hutton, Will
"Why we're in the mess we are"
''

The Observer ''The Observer'' is a British newspaper published on Sundays. First published in 1791, it is the world's oldest Sunday newspaper. In 1993 it was acquired by Guardian Media Group Limited, and operated as a sister paper to ''The Guardian'' ...

'', 1 February 2009.

Content

In this book, Wolf argues that the subprime crisis is structurally comparable to the crisis of 1997 in Latin America, 1998 in Russia and 1999 in South-East Asia. This statement is based on the idea that there is a significant relationship between

microeconomics Microeconomics is a branch of economics that studies the behavior of individuals and Theory of the firm, firms in making decisions regarding the allocation of scarcity, scarce resources and the interactions among these individuals and firms. M ...

of finance and the

macroeconomics Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output (econ ...

of the balance of payments. According to Wolf, this resulted in the United States becoming the "borrower and spender of last resort", thereby unbalancing global capital flows. Against this, Wolf proposes that global economic security depends on the ability of emerging economies to develop robust financial systems based on domestic currencies.

References

{{reflist Non-fiction books about the subprime mortgage crisis International economics 2008 non-fiction books