What Drives Global Capital Flows?: Myth, Speculation and Currency Diplomacy

by Brendan Brown

The massive flow of capital in recent years has revealed a large gap in conventional analysis of international currency flows. Rather than starting with pre-conceived notions of sustainable or non-sustainable current account deficits, Dr. Brown presents a new analysis in which the unconventional becomes a possible mainstream scenario. It is likely that market mechanisms, highlighted through this problem, will prove to be sufficiently robust to cope with the record flows of capital now exiting the savings surplus countries and heading via several turntables into the US. The possibility of crisis hinges on various low probability types of market failure or on severe speculative miscalculation. Unfortunately, international economic diplomacy is not concerned with these real crisis scenarios but is instead driven by a combination of yesterday's doctrines and often a simple extension of national or international agenda.
Dr. Brown shows how neo-mercantilist forces in Washington have formed an unholy alliance with French euro-nationalists to press unwanted and undesirable currency policies on East Asian countries. This unholy alliance promises not only economic disadvantage to all involved but also sets back the liberal political agenda.

264 pages, ebook

First published July 12, 2006

About the author

Brendan Brown is an international economist practicing in London, UK. He has authored many books on international financial topics, including monetary problems in the US, Europe, and Japan, and asset market pricing (including exchange rates) in a global context. The books cover both contemporary trends and historical topics. He was awarded a PhD by the London School of Economics and an MBA by the University of Chicago. Dr. Brown is a regular contributor to Japanese and European financial media.

Reviews

[Lime Street Labrador · Rating 3 out of 5]

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