Was the global financial crisis really a “debt crisis”?

Was the global financial crisis really a “debt crisis”?

Monday, 25 January 2016 - 5:00pm
Venue: 
Seminar Room, European Studies Centre, 70 Woodstock Road, Oxford OX2 6HR
Speaker(s): 
Anatole Kaletsky (Co-Chairman, Gavekal Consultancy)
Chair: 
Adam Bennett (St Antony’s College, Oxford)
Convenor: 
Adam Bennett (St Antony’s College, Oxford); David Vines (Balliol College, Oxford)
Series: 
Political Economy of Financial Markets (PEFM)

This seminar draws on Kaletsky’s book Capitalism 4.0: The Birth of a New Economy in the Aftermath of Crisis, published in 2010 by Bloomsbury. The book's writing was primarily influenced by the subprime mortgage crises of 2007 to 2009; and draws upon the pattern or the fallibility of capitalism. In this book, Kaletsky suggests that capitalism is "not a static set of institutions but an evolutionary system that reinvents and reinvigorates itself through crisis”, and this seminar will  extend the thesis of the book to the euro crisis and British "austerity" debate and ask “Was Global Financial Crisis (GFC) really a "debt crisis"?” and put the argument that excessive borrowing and lending did not cause the GFC or its European aftershocks—the root of the problem was politics, not monetary policy, ethics or regulation.

Anatole Kaletsky has written since 1976 for The Economist, The Financial Times and The Times of London before joining Reuters and The International Herald Tribune in 2012. Kaletsky has been an economic consultant since 1997, providing policy analysis and asset allocation advice to over 800 financial institutions, multinational companies and international organisations through his company, GaveKal, which is co-run with Louis and Charles Gave. He was elected to the governing Council of the Royal Economic Society in 1998. In 2012, Kaletsky was appointed Chairman of the Board of Governors for the Institute for New Economic Thinking, a foundation established after the 2008 financial crisis with $200m of grants from George Soros, Paul Volcker, William Janeway, Jim Balsillie and other leading financiers. INET was set up post-crisis to challenge the mainstream assumptions in contemporary economic research.  Kaletsky was educated at King's College, Cambridge, where he graduated with a first class honours degree in Mathematics, and then at Harvard, where he was a Kennedy Memorial Scholar and gained a master's degree in Economics.