He explained the background for the over-optimisThe author has successfully impressed me the importance of the depression economy theory with cases of economic depression in the 30's, 70's, 80's and 90's in US, Japan, South America and Asia.
He explained the background for the over-optimistic view of US (and global) economists and government towards control of depression via monetary policy and regulation of financial institution.
He then explained the rise of the interesting "shadow bank sector" -- derivative financial instruments that bear the functions of banks and yet
are beyond the "boring" regulatory system. The shadow bank sector combined with the globalization of financial market to crush the stability of the global financial systems.
The author has made many reference to the Keynesian economic theory....Continua