capitalism, 103, 109, 225, 251, 284, 297, 302, 306, 337
capital market liberalization, 113, 114, 140, 142, 149, 158, 170, 181, 246, 297, 304–5, 310–11, 323, 353, 397–98
arguments for, 30, 159, 163
in China, 159, 162, 186
description of, 108, 161
East Asia financial crisis and, 183–84, 186, 187, 188–97, 198, 220
in Ethiopia, 127–30
risks and consequences of, 116, 155, 160, 162, 168, 177, 192–97, 322, 324–25, 337
in South Korea, 195–97, 431
carbon emissions, standards for, 381
carbon pricing, 17, 371–72
cartels, 332
aluminum, 263–66, 332, 436
Cayman Islands, financial secrecy in, 38, 316
central banks, 305
European, 141
G-22 and, 211
IMF’s relationship with, 110, 117, 121, 133, 294, 313–14, 428, 438
of Malaysia, 215, 216
of Russia, 241, 250, 263
secrecy of, 316
of South Korea, 141
of U.S., see Federal Reserve Bank, U.S.
“window guidance” by, 165
chain stores, 163
Chamber of Commerce, U.S., 411
Chang Mai Initiative, 206
Channel Islands, 38
Chapter 11 bankruptcy, 223, 438
Chavez, Hugo, 81
Chemical Bank, 127
Chenery, Hollis, 111
Chernomyrdin, Viktor, 259
Chile, xxxiv, 73, 116, 207, 273–74, 352, 372, 375
China, Imperial, Opium Wars and, 137, 157, 421
China, People’s Republic of, xxxvi, 62, 77–78, 174, 205, 306, 341, 344, 358, 373, 389–90, 392
AIIB run by, 373, 377
capital market liberalization in, 159, 162, 186
cheap labor in, 12, 19
Communist Revolution in, 226, 228–29
Cultural Revolution in, 254
domestically driven growth in, 64–65
economic crisis avoided by, 217–19
effect on smaller countries, 80
exchange rate and, 14, 15
excluded from Regional Comprehensive Economic Partnership, 375
foreign investment in, 162, 168, 273, 437
foreign reserves of, 14
and Germany’s manufacturing, 407
global reserve system supported by, xxxv
gross domestic product of, xxxvi, 104
income in, 158, 271
as largest economy in the world, 59, 94
market transition of, 104, 184, 228–29, 270, 271–74, 276, 303
middle class in, xviii, xlii
as negotiator on trade agreements, 370
new silk road policy of, 379–80
Paris Agreement commitment of, 381
political reform in, 273
possible protectionism by, 69
poverty reduction in, xix, 60, 176, 271–72, 401, 427
privatization in, 272, 274, 275
rising wages in, 57
solar panels from, 421
strengthening ties with Latin America, 72
subsidies in, 423
trade liberalization of, 155–56, 158
Trump’s accusation of exchange rate manipulation against, 14
Trump’s threat of tariffs against, 371
unskilled-labor-intensive goods from, 19
urban manufacturing in, 400
U.S. food purchased by, 66
U.S. tariffs on, xxxiv, 4, 25, 55
U.S. trade deficit wth, 24, 371, 374
Walmart in, 11–12
WTO membership of, 9, 158, 159, 314
Chirac, Jacques, 102
chlorofluorocarbons, 312
Chubais, Anatoly, 261, 283
cigarettes, 36, 415
Citibank, 117, 127
cities, 67–68
Citigroup, 117
City of London, 38
civil rights laws, xli
Clausen, William, 111
climate change, see global warming
Clinton, Bill, xxxi–xxxii, 105n, 166, 186, 202, 262, 348, 376
Clinton, Hillary, xxxix
Clinton administration, 129, 145, 158, 164, 173, 175, 195, 240, 257, 258, 262, 267, 281
see also Council of Economic Advisers
coal, 21, 57
Coase, Ronald H., 254–55, 435
Coase’s theorem, 254–55, 435
coca, cocaine, 157
Coca-Cola, 163
Cold War, 121, 192
Colombia, xxxiv, 73, 241, 372, 375
colonial era, 109, 115, 121, 135–36, 137
command and control system, 229, 272
Commerce Department, U.S., 158, 166, 264, 267
communication costs, 118, 390
communism, 115, 121, 225, 226, 228, 235, 279, 359
economic extremes avoided by, 245
failure of, 233
transition from, see market economy, transition to
Communists, former, 228, 258–59, 435–36
communities, xxii–xxiii
Community Reinvestment Act (CRA) (1977), 165
comparative advantage, trade liberalization and, 12–13, 16–17, 31, 47, 155, 389, 408
compensation, 391
competition, 82, 169, 230, 263, 272, 383
cartels and, 265–66
competitive markets needed for, 152, 181, 246–47
between multinational and local businesses, 163–64
privatization and, 151–52, 181, 246–47
“competitive pluralism,” 108
complements, 417
computer chips, 188, 211, 219
conditionality, 111, 140–48, 190
definition of, 107, 140
failure of, 140, 142–43, 148
political control in, 141, 143
shift to selectivity from, 145–46, 330
targets in, 140
confidence, 202, 204, 238, 288
Congress, U.S., 117, 147, 267, 268, 365, 431
conspiracy theories, 221–22, 262
Constitution, U.S., 199, 224
contagion, IMF and, 288
contracts, incomplete, 179
corn, 23, 411
Corporación Andina de Fomento (CAF), 372
corporate income tax, 413, 425
corporate restructuring, 210–11, 219
corporate taxation, 416
corporations, see multinational corporations
corruption, 133, 136, 143, 170, 220, 230, 275, 302
in crony and mafia capitalism, 220, 225, 252, 266, 269, 278, 289, 309
in foreign investment, 165, 166–67
in privatization, 153–54
in Russia’s market transition, 225, 230, 239–40, 248–49, 252, 257, 259, 261, 266, 278, 289
cost recovery programs, 118, 147
Côte d’Ivoire, 151–52, 166
cotton subsidies, xxx, xlii, 46, 73, 370
Council of Economic Advisers, 175, 195–96, 197, 257, 268, 333, 362
author as member and chairman of, 105, 122, 130, 195, 198, 199, 308, 317
Justice Department Antitrust Division and, 265
creative destruction, 273
credit, 165, 207, 208, 209, 293, 297
credit lines, contingent, 323, 440
Crimea, 11
crime rates, 144, 153
crisis response, improvements in, 327–28
crony capitalism, 220, 225, 266, 269, 278
culture, 82
currency:
“Dutch disease” and, 167
see also exchange rates
currency speculation, 287–88
in East Asia financial crisis, 183, 187–90
see also hot money
current account deficits, 14
Cyprus, 242, 364
Czech Republic, 247, 249–50, 270, 271, 275, 277, 361
Daewoo, 188
Dasgupta, Partha, 178
; Davos, xxix
De Beers diamond cartel, 135
debt, xxix, 220, 224, 242, 310, 324
Latin American crisis in, 326–27, 440
debt equity ratios, 203
debt forgiveness or reduction, 103, 106, 108, 139, 330–32, 337–38
debtor prisons, 291
debt restructuring, 364
decolonization, 345
default, 348
defense, 417
Defense Department, U.S., 46
deforestation, 313
Delaware, 38
democracy, democratic processes, 107, 118, 122, 123, 135, 224, 307–8
corruption’s effects on, 167
economic reform and, 273–74
globalization and, 335
IMF policies’ undermining of, 190, 260, 335
in Russia, 225, 228, 258, 260, 281, 282–83
democratic deficits, 97
Democratic Party, xxxviii, 19, 164, 175, 258, 333, 416
Democratic Republic of the Congo, 133, 331
demographic shifts, 376
Denmark, 398
depressions, 109–10, 215, 307
in Indonesia, 172, 205
see also Great Depression
deregulation, xxv, xxix, 85, 167, 343, 351
as based on greed, 82–83
in savings and loans debacle, 160, 196, 207
see also capital market liberalization
desertification, 393
developing countries, emerging countries:
catching up by, 387
developed countries vs., xxix–xxx
in Development Round, xxxii
globalization’s opponents in, xvi
IMF as viewed by, 134, 190–91, 298
lack of unity among, 93
post–World War II policies foisted on, 345–46
role in globalization of, 343
development, reason for, 339
development assistance reform, World Bank and, 328–32
Development Round, xxxii, xxxiv, 72–73, 304, 314, 332, 370
development rounds, 369–70
diamonds, 133, 134, 135
Dickens, Charles, 75
“dictatorship of the proletariat,” 228
digital access gap, 152
digital economy, 383
diversification, of risk, 83
diversifying of global economy, 72–73
dividends, 35
Dobbs, Lou, 347
Dodd-Frank Financial Reform Act, 76, 368
Doha, 304, 314, 332–33, 338
dollar, 14
protectionism and, 62
as reserve currency, xxxv–xxxvi, 91, 364
domestic investment, 61, 422
domestic savings, 14, 61, 62, 91, 422, 426
double taxation, 39
drug companies, 106, 333
drug prices, 424
drug production, 46
dual economies, 167
due process, 419
Duma, 228, 258, 261
dumping, 67–69, 263–66, 267
“Dutch disease,” 167
duties, 423
earned income tax credit, 87
East Africa, 135
East Asia, 59, 119, 142, 155, 171, 176, 182, 307, 329, 335, 342
economic growth in, 59, 184–86, 187–88
as factory to world, 59
savings rates in, 162, 168, 174, 185, 192
see also specific countries
East Asia financial crisis, of 1997, xxix, 15, 73, 104, 116, 118, 138, 159, 176, 178, 183–224, 236, 237, 269, 308–9, 310, 321, 323–24, 328, 337, 338, 341, 342, 350, 355–56, 440
alternative responses to, 215–19, 222–23
bailout packages in, 189, 212, 430
and capital flows, 34
causes of, 183–84, 192–93, 203, 221–22
IMF role in, xxxv, 183–84, 185, 186–87, 189–91, 192–224, 298–302, 310, 318, 354, 355, 431
initial Western response to, 186–87, 189–92, 197–202
interest rates and, 187, 189–90, 191, 198, 202–6, 354
long-term effects of, 220
patterns followed by, 187–89
recovery process after, 213–21
restructuring errors made in, 206–11
social and political consequences of, 211–13, 219
spread of, 183, 187, 191–92, 200, 216, 221, 236, 288
Treasury Department and, xxxv, 184, 185, 192–97, 199–200, 205, 221, 300, 301, 318, 354, 355, 361
East Asia Miracle, 184, 185
East Asian Miracle, The, 185, 441
Eastern Europe, 225, 228, 233, 270, 303
Ebola, xvii, xx
economic crises:
causes of, 192–93, 194–95, 214, 430
recovery process after, 214–15
textbook responses to, 198, 218
see also East Asia financial crisis, of 1997
Economic Report of the President, 175
economics:
predictions in, 276
trickle-down, 173–75, 177, 297
trickle-down-plus, 174–75, 176, 177
Ecuador, 241, 292, 323, 333, 372
education, 57, 86, 103, 118, 147, 155, 171, 174, 175, 177, 180, 185, 186, 191, 245, 307, 405, 419
elites, 52
emerging countries, see developing countries, emerging countries
Energy Department, U.S., 420–21
energy security, 73–74, 378
Enhanced Structural Adjustment Facility (ESAF) program, of IMF, 124
environmental issues, xxi, xxxvi–xxxvii, 3, 4, 16–18, 26, 29, 75, 80, 95, 305, 307, 311, 312, 381
equity, 203
Erdoğan, Recep, 380
Eritrea, 123
Estonia, 360
Ethiopia, 60, 132, 133, 135, 182, 356–57
capital market liberalization in, 127–30
IMF and, 122–30, 138
political and economic conditions in, 122, 123, 124–25
World Bank and, 124–25, 129
euro crisis, xxx, 90
Europe, 109, 112, 115, 116, 151, 158, 159, 160, 162, 314, 335
strengthening ties with Latin America, 72
European Central Bank, 405, 408, 424
European Commission, 424
European Court of Justice, 382
European Union (EU), 139, 293, 334, 382
Britain’s leaving of, 4
effect on small countries, 80
and market transition in Eastern Europe, 361
“Everything But Arms,” 334
exchange rates, 13–15, 34, 61, 278
IMF and, 286–88, 290–92, 298
risk management and, 326–27
exit tax, 216–17, 299
Export-Import Bank, 418
externalities, 34–35, 79
greenhouse gases as, 371
macroeconomic, 413
Facebook, 383
factor price equalization theorem, 409
“fair market value,” 264
fairness, 382
fair trade laws, 67, 263, 267
“fallacy of composition,” 209
Farage, Nigel, 3
farm subsidies, U.S., xxx, xxxii, xlii, 20, 23–24, 73, 105, 341
Federal National Mortgage Association (Fannie Mae), 151
Federal Reserve Bank, U.S., 8, 16, 67, 87, 131, 141, 145, 202, 241, 327
effect on small countries, 76, 81
exchange rates determined by, 15
films, 82
Finance for Development, 362–64
finance ministries, 187, 305, 334
G-22 and, 211
IMF’s relationship with, 110, 111, 117, 119, 121, 133
financial market liberalization, see capital market liberalization
financial sector:
economic crisis caused by, 53
rules of globalization written by, 95
financial sector regulation, 176
financial services, 57
Financia
l Stability Board, 368
Financial Stability Forum (FSF), 367–68
financial system, function of, 206–7
Financial Times, 199
Finland, 300
fiscal deficits, 13–14, 62, 90–91, 92, 389, 407–8
fiscal paradises, 38–40
fiscal policy, 8, 9, 109
definition of, 202
expansionary, 91
fiscal surplus, 407
Fischer, Stan, 117, 199, 205, 221, 294
Fong Weng Phak, 216
food and fuel subsidies, 172, 212, 305, 308
food security, 73–74, 378
Ford Foundation, 133
foreign aid, 103, 124–26, 129, 192
foreign investment, 31–38, 163–68, 195, 216, 217, 235, 432
banks and, 164–65
in China, 162, 168, 273, 437
corruption and, 165, 166–67
creating environments for, 249, 253, 280
direct, 31–33
downsides to, 162–68
governments and, 166
1990s levels of, 192, 430
role of, 163, 168
and rule of law, 31–32
spillovers from, 32
Trump and, 31–32, 33
Fortune, 216
France, xxxvii, 82, 95, 102, 112n, 157, 166, 273, 397
global reserve system supported by, xxxv
“free but fair trade,” 95
Freedom of Information Act (1966), 147, 317
free-market ideology, see market fundamentalism
free trade, theories on, 7–8, 18–19
Free Trade Agreement of the Americas, 375
free trade agreements, 20–21, 23–29
effect on regulations, 48
objectives of, 26, 28
French Revolution, 253
French Telecom, 166
Friedman, Milton, 258
fungibility, 142
G-7, xxxvi, 112–13, 189, 223, 297, 361, 363, 397, 431
G-8, 112n
G-20, xxxvi, 361–62, 363, 365, 372
G-22, 211
Gaidar, Yegor, 259, 265
Gary, Ind., xxiii–xxiv, 88–89
gas, 11
Gazprom, 259
General Agreement on Tariffs and Trade (GATT), 102, 105n, 113
general interest, 305–6
General Motors, 284
General Theory of Employment, Interest and Money, The (Keynes), 194
generic drugs, 419
genes, 42
genetically modified organisms (GMOs), 4, 404–5
Genoa, 101, 107
Georgia, 360
Gerashchenko, Viktor, 241
Germany, 11, 24, 61, 62, 88, 112n, 213, 273, 306, 361, 388, 414
manufacturing jobs in, 407
steel production in, 397
Ghana, 145
GI Bill, xxiii
gig economy, 384–85
girls, education of, 171, 329
Glass-Steagall Act, 75
Global Economic Coordination Council (GECC), 363
global economic structure, changing, 382–87
Global Environmental Fund (GEF), 371
global financial crisis, of 1997, xxx, 104, 155, 162
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