Cover image for Mad money : when markets outgrow governments
Title:
Mad money : when markets outgrow governments
Author:
Strange, Susan, 1923-1998.
Personal Author:
Publication Information:
Ann Arbor : University of Michigan Press, [1998]

©1998
Physical Description:
ix, 212 pages ; 24 cm
General Note:
Sequel to Casino capitalism.
Language:
English
Corporate Subject:
ISBN:
9780472096930

9780472066933
Format :
Book

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HG3881 .S773 1998 Adult Non-Fiction Non-Fiction Area
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Summary

Summary

One of the founders of the field of international political economy addresses the reasons for the volatility of global markets in recent years


Summary

The world's financial system is crazier and even more out of control than it was ten years ago. Mad Money analyzes the erratic nature of change and innovation in financial business in recent years and discusses the weak points--political as well as economic and technical--of a system driven more by volatile markets than by governments.
The central issue is global finance; "mad money" is how Susan Strange characterizes the alternately rampant and depressed financial markets of recent years. She sets out here to diagnose the sources and nature of the problem of markets having outgrown governments and to examine its social and political ramifications. Opinionated and brilliantly argued, Mad Money will surely provoke controversy and generate many conversations.
Susan Strange's previous book, Casino Capitalism , established her as an authority on international finance and the basic structures of the international political economy. This sequel will reach not only scholars and students but a wider readership, including everyone worried by the yo-yoing of stock markets, the currency turmoil in Asia, and the general mismanagement of money by governments and international organizations such as the International Monetary Fund and the World Bank.
"In her patented provocative and compelling style, Susan Strange offers us an illuminating, often dark, image of the changing nature of international relations in the next century. Although a liberal at heart, her critical approach in this work challenges many of the central normative assumptions of an unfettered regulatory future of great prosperity and little conflict. This effort represents a cumulative statement of one of the senior scholars of our generation and cannot be ignored." --Simon Reich, University of Pittsburgh
"Chutzpah! That's what Susan Strange has long demonstrated in her research, teaching, and writing. Even those who see the world differently will respect what she has accomplished here." --Louis W. Pauly, University of Toronto
Susan Strange is Professor of International Political Economy, University of Warwick.


Reviews 2

Choice Review

This quasi-sequel to Strange's earlier book Casino Capitalism (1986) argues that financial markets are far beyond the control of national and international authorities. She investigates the nature and origins of this increased financial volatility, discussing major changes that have occurred in the last decade. First, the increased speed of electronic communications and innovations (derivatives, hedge funds, etc.) in financial markets has increased market swings. Second, management of financial crises is more difficult, as the political basis for cooperation is now weaker, especially with relations between the US and Japan and between France and Germany. Third, the role of banks has changed from that of intermediation to investment bankers. Fourth, increased mobility of capital has eroded each country's system of regulating and controlling financial businesses. Strange also discusses the continued failure to solve the problems of transnational indebtedness and crime. She concludes that financial decision-making is the driving force in a market economy, while government influence has declined; large companies can better utilize financial innovations than small ones; the wave of mergers and acquisitions has resulted in increased industrial concentrations; and, lastly, income inequality has increased not only within but between countries. Provocative reading for upper-division undergraduates through professionals. P. R. Kressler; Rowan University


Choice Review

This quasi-sequel to Strange's earlier book Casino Capitalism (1986) argues that financial markets are far beyond the control of national and international authorities. She investigates the nature and origins of this increased financial volatility, discussing major changes that have occurred in the last decade. First, the increased speed of electronic communications and innovations (derivatives, hedge funds, etc.) in financial markets has increased market swings. Second, management of financial crises is more difficult, as the political basis for cooperation is now weaker, especially with relations between the US and Japan and between France and Germany. Third, the role of banks has changed from that of intermediation to investment bankers. Fourth, increased mobility of capital has eroded each country's system of regulating and controlling financial businesses. Strange also discusses the continued failure to solve the problems of transnational indebtedness and crime. She concludes that financial decision-making is the driving force in a market economy, while government influence has declined; large companies can better utilize financial innovations than small ones; the wave of mergers and acquisitions has resulted in increased industrial concentrations; and, lastly, income inequality has increased not only within but between countries. Provocative reading for upper-division undergraduates through professionals. P. R. Kressler; Rowan University