Advance Praise “Every country has its star institutional builders Tan Sri Lin is a truly brilliant institutional builder and doer from his days as central banker, architect to the design and strengthening of Malaysia’s financial system and advisor to all prime ministers His masterly analysis of domestic and global events show through in his clear writings in this book, passionately written with verve, practical to a fault, and wonderfully told—from the biggest picture to the smallest institutional detail Only one who has done it before firsthand knows how the system works, what to do, and how to fix it No Asian writer has his command and authority on emerging market economic development from the ground up This is truly the work of a master, teacher, and mentor—to be read and enjoyed by students and policy makers alike.” Andrew Sheng, Chief Adviser to the China Banking Regulatory Commission and former Chairman, Securities & Futures Commission, Hong Kong “The style of the writing in this book will allow even a person who is not knowledgeable in finance or economics to comprehend the subject and enjoy reading the book The topics covered are related to current issues and are loaded with lessons and advice This book should be read by anyone wanting to make economic sense of the happenings in the financial markets and their effect on our lives.” Tun Ahmad Sarji, Chairman, PNB (Permodalan Nasional Malaysia) and former Chief Secretary to the Government of Malaysia “When it comes to economics, I am very much a layman That’s why I have turned to my learned friend See-Yan’s fortnightly column, and they have enabled me to make sense of what is going on around me Now that they are compiled into a book, I would recommend it to all laymen like me who want to understand the forces at play that make us go up or down economically.” Tun Mohammed Hanif Omar, Deputy Chairman, Genting Group and former Inspector-General of Police, Malaysia “Essays on global economic and financial events are usually full of jargon that would put off most people after reading a few paragraphs See-Yan cleans up the jargon and makes the concepts more comprehensible Whether you are a student, academic, corporate executive, public official, or just a curious global citizen, See-Yan can help you relate to issues of global importance, and understand ‘what are we to do’ in our respective roles.” Sidek Hassan, Chairman, PETRONAS (Petroliam Nasional Malaysia) and former Chief Secretary to the Government of Malaysia “Professor Lin’s depth of knowledge and breadth of new strategic ideas are drawn from his extensive research and illustrative insights into management and leadership from a deep variety and culture of model practices I would like to recommend to locals, world readers, and professionals, both in the public and private sectors, especially the banking sector, to read this book for its superior insights and superior execution.” Thong Yaw Hong, Co-Chairman, Public Bank Malaysia and Chairman, Prime Minister’s Economic Council Working Group “Tan Sri Lin’s essay collection covers one of the most epochal periods for both the global economy and Malaysia’s ongoing development journey This backdrop gives See-Yan a rich and dramatic canvas to apply his sharp mind and deep experience Dr Lin indeed lived and lit up for us such interesting times with much gusto and in doing so brought the world to Malaysia and some of Malaysia to the world This book is an indispensable record and compendium of a pivotal period, from one of the granddaddies of economic analysis in our region.” Azman Mokhtar, Managing Director, Khazanah Nasional (Sovereign Wealth Fund) “See-Yan is a brilliant economist with a special knack for translating the complex into simple language His objective economic analysis and his insights have helped us to better assess opportunities and anticipate challenges This compendium of his essays, written for the noneconomist, will prove useful for any business leader or professional who desires to be more aware of the economic forces shaping the world today, especially fast-paced Asia.” Tan Chin Nam, entrepreneur and property developer, and Honorary Life President, IGB Corporation Malaysia “Professor Lin’s insightful commentary will appeal to professors and students of economics This highly readable book will serve as a useful reference for anyone seeking to understand economics from a global perspective Tan Sri Lin, an accomplished economist, takes a bold stand on the many economic issues that he vividly portrays in the book His balanced narrative offers ample room for the reader to arrive at his own solution to the ills afflicting the global economy.” Noor Azlan Ghazali, Vice Chancellor & Professor of Economics, Universiti Kebangsaan Malaysia “Having studied at Harvard University, and being part of the much decorated Bank Negara’s top management during a period in which Malaysia had to confront several tumultuous financial turmoils, Lin See-Yan’s knowledge and experience shines in this gem The book is a synthesis of concepts and policies that blend with reality While students and academics of monetary economics will benefit enormously from the breadth and depth of the analysis, it is a must-read for the nonspecialists as its presentation is simple, clear, and crisp.” Rajah Rasiah, Rajawali Fellow, Ash Center, Harvard Kennedy School, Harvard University and Professor of Economics and Technology Management, University of Malaya “This book by one of Malaysia’s most distinguished economists should be read by all in the Malaysian Economic Association and all academic staff for its deep analysis of how the country dealt with its macroeconomic policy at the most crucial moments.” Sheriff Kassim, President, Malaysian Economic Association and former Secretary-General, Ministry of Finance, Malaysia The Global Economy in Turbulent Times LIN SEE-YAN Cover images: Illustration © LAT 2014; Stormy sky © Michal Koziarski/iStockphoto Cover design: Wiley Copyright © 2015 by John Wiley & Sons Singapore Pte Ltd Published by John Wiley & Sons Singapore Pte Ltd Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte Ltd., Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628, tel: 65–6643–8000, fax: 65–6643–8008, e-mail: enquiry@wiley.com Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties 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978-1-119-05994-3 (ePub) Typeset in 10/12 pt, ITC Garamond Std Light by Aptara Inc., New Delhi, India Printed in Singapore by C.O.S Printers Pte Ltd 10 To Emily NH Hsiu-Yi & Kevin Foong-Yi AMN Diaan-Yi & Tom And Ashley Xuan Zoe Qin Joshua Di The Loves of My Life Jo-Yi & KY 949 Index Earth Summit, Rio de Janeiro (1992), 477, 539–540, 541–542, 543 East Germany, 315 ECB Seee European Central Bank Economic models, 147–150 failure of, 147–148 historic iterations of, 148–149 Malaysia’s new economic model (NEM), 32–34, 470, 650–651, 652, 653, 659, 665, 667, 673, 690, 691 Minsky’s challenge to, 148, 149 risk and morals in, 149 Economic Policy Institute, 479 Economic transformation program (ETP), Malaysia, 643, 665, 667–668 Economist, The, 153, 504, 572 Economist Intelligence Unit, 438, 689 EdX, Harvard University, 596, 598, 613, 618 Egypt, 68, 71, 108, 171, 479, 547, 700, 819 Eichengreen, Barry, 69, 403, 406, 433, 808 El‐Erian, Mohamed, 49, 160, 163, 225, 245, 284, 714 El‐Hage, Nabil, 590 Entrepreneurship, 44, 73, 164, 525, 562, 574, 578, 579, 582, 616, 643, 653, 655, 656, 670, 673, 680, 682, 685, 687, 688, 689, 691, 692, 693, 694, 697, 698, 700–702, 712, 741, 761 Environmental degradation Chinese development and, 115, 229, 234, 543, 815, 824, 842, 857, 861 cities and, 555 costs of, 542–543 lack of governmental regulation and, 148-149 Malaysia and, 234 UN on strategies to halt and reverse, 477, 534 urbanization and, 844 Environmentalism barriers to, 550 blue oceans and, 523 call for action on, 542 cost of not pursuing change in, 542–543 development strategies and, 477, 540 funding for, 540 land development and, 856 leadership from developed economies in, 541 livable cities and, 439 new economic model for, 650 population growth slowdown and, 561 protectionism masquerading as, 448 public policy reforms for, 858, 862, 869, 877 renewable energy and, 103, 528, 548, 656 UN on strategies for, 477, 534, 539, 541, 542 See also Green global economy; Sustainable development eThekwini Action Plan, BRICS, 812 Ethics, in business, 529, 590–591 Euro Interbank Offered Rate (EURIBOR), 502, 507–508 Euronext, 509 European Banking Authority, 439 European Banking Federation (EBF), 507, 508 European Central Bank (ECB), 50–51, 61, 85, 98, 99, 108, 109, 113, 117, 166, 170, 181, 183, 190, 191, 201, 208, 216, 269, 270, 275, 276, 278–279, 280, 281, 282, 283–284, 288, 295, 296, 297, 305, 306, 307, 311–312, , 318–319, 320, 324, 325, 329, 333, 335, 336, 341, 342–343, 439, 454, 466, 718, 729, 751–752, 923, 925, 939 European Commission (EC), 80, 183–184, 222, 325, 466, 787, 887 European Court of Justice, 318, 319 European Financial Stability Facility (EFSF), 77, 79, 80, 85, 301, 302, 308, 311, 317, 318, 320 European Investment Bank (EIB), 96, 98, 325, 333, 923 European Stability Mechanism (ESM), 296, 318 Export‐led growth, 449, 706–708, 737, 745 Falling wages, paradox of, 145 F&N Holdings (FNH), 905–911 Fan Gang, 153–154 “Fast track” Trade Promotion Authority, 751 Faust, Drew, 598, 603, 823 Fed Seee US Federal Reserve Bank (Fed) Federal Deposit Insurance Corporation (FDIC), US, 492, 495, 496 Federal Open Market Committee (FOMC), 208 Feldstein, Martin, 18, 27, 73, 80, 217, 263–264, 273, 287, 291, 382, 466, 471, 491, 530, 714 Ferguson, Niall, 220, 381, 491 Fertility rates, 555–556, 559–560, 561, 562, 563 Financial Conduct Authority (FCA), UK, 505, 508 Financial Services Authority, UK, 503, 505 Financial Stability Board (FSB), 24, 490, 517, 518, 849 Financial transactions, global tax on (GTFT), 478, 479, 480 Finland, 178, 306, 320, 326, 669 Fischer, Stanley, 479, 490 Fisher, Irving, 147, 239–240, 442 Fitch Ratings, 73, 84, 213, 244, 301, 309, 312, 326, 767, 771, 782, 815, 848, 874 Flash crash, 200, 512, 513 Florida, Richard, 689 Food and Agriculture Organisation (FAO), 548, 549, 557 Food supply climate change and, 557 crops and food security and, 537, 548, 550–551, 557 demographic changes and, 557 needed dietary amounts and, 548–549 possible solutions for shortages in, 550–551 supply and demand in, 547–548 waste and, 549–550 Fragile Five BIITS nations (Brazil, India, Indonesia, Turkey, South Africa), 726–727, 731–732, 819, 820 See also specific nations “Framework for Strong Sustainable and Balanced Growth” (G‐20), 32 France austerity fatigue in, 330, 332 austerity measures in, 320, 325, 327, 923 bond yields in, 370 consumption in, 99, 337, 934 credit rating changes for, 84, 214, 306, 318, 320, 329, 485 deficits in, 84 950 France (continued) d demographic shifts in, 562, 713 elections in, 108, 320, 325, 326, 329, 330, 332 entrepreneurial activity in, 694, 699 European Central Bank (ECB) measures and, 269, 454 factory activity in, 81 fiscal health of, 84, 194, 712, 836 fiscal problems in, 84, 99, 109, 117, 177, 215, 269, 276, 329, 336, 344 fiscal recovery of, 250, 330–331, 922, 923 fiscal restraint in, 55 GDP changes in, 36, 122, 306, 332, 718 global economic trends and, 90, 98, 107, 184, 301, 418, 922, 931 global leadership by, 83–84, 274, 317, 325, 418, 444, 473, 479, 490 global trade and, 72 gold reserves in, 396 gold standard in, 379, 386, 388 government bonds from, 84, 454 Greek debt crisis and bailout and, 80, 288, 296, 313 growth in, 29, 66, 74, 81, 91, 99, 108, 109, 117, 177, 216, 250, 269, 270, 276, 302, 306, 332, 336, 449, 787, 923, 924, 931 as G-20 nation, 24, 26, 83–84, 98, 401, 479 industrial output in, 109, 235 international financial centers (IFCs) and, 439 international monetary system (IMS) and, 401, 490 Italian debt crisis and, 300 manufacturing in, 184, 246, 250, 282, 336 political leadership in, 187, 276, 330, 332, 444, 473 political unrest in, 319, 320, 326, 327, 329, 330–331 public debt of, 43, 216, 247, 318, 325, 330 public policy in, 187, 839 purchasing power parity (PPP) in, 423 real income per capita in, 860 recession in, 327, 336, 922 Rio+20 conference (2012) and, 539 stocks in, 78, 215 unemployment in, 233, 250, 325, 329, 330, 331, 332 Index venture capital in, 699 Free‐market fundamentalism, 238 Free trade, 441 APEC’s support for, 87, 104, 105, 750–751 ASEAN and, 104, 750–751 Chinese zones (FTZs) for, 461, 854 G-20 and, 43, 56, 105, 443 India and, 774 Marx on, 240 Smoot–Hawley tariffs as background to, 442 Trans‐Pacific Partnership (TPP) for, 87, 104, 369, 750 US–EU deal on, 751 Free Trade Area of the Asia‐ Pacific (FTAAP), 104 Free‐trade zones (FTZs), 461, 750, 854 French Revolution, 833, 858 Front running, 512–513, 514 Fujifilm, 901 Fukushima Dai‐ichi nuclear plant disaster, Japan, 72, 92, 355, 356, 358 “Future We Want, The” (Rio Summit; 1992), 539–540, 541, 543 “Gang of 40” (Kristof), 256 Geithner, Timothy, 10, 474 General Agreement on Tariffs and Trade (GATT), 442 General Theory of Employment, Interest and Money (Keynes), 12–13 Germany austerity fatigue in, 330 austerity measures in, 42, 91, 302–303, 326, 327 banking crisis and, 297, 300 China and, 414, 449, 451 consumption in, 99, 270, 326, 337, 934 credit rating changes for, 214, 318, 337, 485 Cypriot bailout and, 342 debtor nations and, 226 demographic shifts in, 561, 562, 941 economic strength of, 276 elections in, 330 EU bailout fund and, 178, 278, 279, 288, 314 EURIBOR rates for borrowing by, 502 European Central Bank (ECB) measures and, 61, 109, 311, 320, 325, 335, 454, 925 European Union policies and attitude of, 473 as Europe’s powerhouse, 73, 78, 109, 138, 175, 178, 282, 326, 336 euro support by, 179, 319 eurozone austerity and bailout programs and, 37, 55, 61, 85, 98, 99, 178, 284, 290, 296, 302–303, 318, 319, 324, 325, 332, 345, 466 eurozone fiscal problems and, 60–61, 62, 137–138, 184, 270, 282, 315, 316, 326, 787, 939 eurozone growth policy and, 330, 332, 333, 923, 925 exports by, 705, 715, 933 fiscal health of, 26, 43, 55, 61, 178–179, 283, 315, 332, 712, 718, 815, 922 fiscal problems in, 38, 73, 99, 109, 122, 177, 227, 270, 336, 337, 923, 937, 939 fiscal recovery of, 29, 90, 166, 177, 250, 269, 276, 922 GDP changes in, 36, 122–123, 282, 718 global economic trends and, 26, 90, 107, 141, 184, 301, 922, 931 global leadership by, 274, 314, 317, 473 global tax on financial transactions and, 479 gold standard in, 379, 386 government bonds from, 73, 78, 79, 84, 175, 200, 216, 258, 300, 311, 336, 371, 454, 718, 925 Greek debt crisis and bailout and, 80, 98, 99, 289, 290, 291, 296, 297, 302, 307, 313, 314, 315, 321 growth in, 55, 60, 66, 78, 80–81, 91, 99, 108, 109, 117, 122–123, 177, 194, 216, 250, 270, 276, 302, 306, 307, 323, 332, 449, 787, 835, 923, 924, 931 as G-20 nation, 24, 26 hyperinflation in, 38, 386 IMF on fiscal policies of, 190 industrial output in, 99, 109, 194, 235, 276, 306, 718 inflation in, 312 international trade and, 811 Italian debt crisis and, 300 Japan and, 835, 836 manufacturing in, 81, 184, 246, 250, 307, 312, 336 market reactions to, 175, 215, 337 951 Index payments surpluses of, 26, 297, 403, 449, 451 political leadership of, 325, 332 political unrest in, 320, 327, 713 possible recession in, 323, 327, 922, 923, 931 public debt of, 43, 247, 318, 332, 713 recession in, 158, 177, 276 reunion of, 406 savings in, 137, 138, 415 South Korea and, 759 stocks in, 78, 215 Swiss economy and, 454 unemployment in, 90, 117, 184, 194, 233, 250, 312, 325, 713 unemployment solutions from, 50 university education in, 674 venture capital in, 694, 701 World War I and, 391 World War II and, 237, 294, 315, 391 Gerschenkron, Alexander, 433–434 Gilman, T., 357, 358 Gini coefficient, 577, 842 Glass‐Steagall Act (1933), 489 “Global Economic Prospects” reports (World Bank), 35, 193, 429 Global Livaeble Cities Index, 438–439 Global middle class, 572 Global Power City Index, 438 Global tax on financial transactions (GTFT), 479, 480 Global warming, 528, 533, 534 Goldman Sachs, 208, 209, 499, 805, 811, 818, 825, 889, 909 Gold standard, 379–382, 385–388, 393–394 Governance, 818, 885–918 blueprint for quality in, 893–894 in China, 856, 862 conflict of interest and, 888–889 continuing education for, 897 creative destruction and, 902–903 F&N Holdings (FNH) example of, 905–911 financial crisis and, 887–888 independent directors in, 890–891, 894–895 Kodak example of, 899–903 limits on multiple directorships in, 895 mandatory poll voting in, 896–897 need to reform, 179 power of chief executive officers (CEOs) in, 889–890 separation of chairman and chief executive officer (CEO) in, 896 SGX–ASX merger example of, 913–918 women directors in, 897 Government transformation program (GTP), Malaysia, 665, 667, 668 Great Britain Seee United Kingdom Great Depression, 6–7, 11, 19–20, 31, 159, 210, 220, 238, 240, 247, 379, 386, 406, 441, 442, 471, 474, 505, 749–750, 751 Great East Japan Earthquake (2011), 65, 68–69, 72, 89, 170, 171, 355–360 Greece bankruptcy of, 293–297, 317, 331 bank write-downs in, 77 corruption and tax avoidance in, 247, 313, 329 Cypriot investment in, 342 deficits in, 79–80 elections in, 99, 325, 329, 331, 332, 939 financial markets and, 336 GDP declines in, 80, 98, 291, 305, 306, 324, 329, 331, 332 government bonds in, 73, 342, 484 insolvency of, 294–295 lack of fiscal discipline in, 287, 291, 466, 471 manufacturing in, 312 political unrest in, 83, 99, 290, 307, 327, 330 possible eurozone exit (Grexit) by, 108, 183, 271, 305, 330, 331, 340, 717, 718, 722, 939 recession in, 61, 305, 307 unemployment in, 116, 117, 177, 233, 247, 250, 295, 305, 312, 332 wage and income declines in, 283, 860 Greek debt crisis austerity measures and, 86, 99, 288, 290, 296, 305, 307, 309, 311, 330 background to, 293–294 bailout programs for, 48, 77, 84, 85, 166, 216, 270, 288, 289–290, 295–296, 299, 300–302, 305, 307, 309, 310, 311, 317, 324, 343, 714, 924 credit rating changes from, 66, 73, 288, 289, 291, 293, 301, 305, 306, 308, 309, 312, 484 debt guarantee proposal for, 297 debt restructuring after, 311, 332 default possibilities in, 79–80, 225, 287, 293, 309, 312, 331 deflation concerns and, 36, 291 doubts about resolution of, 288–289 European Central Bank (ECB) measures and, 288, 295, 329 eurozone reactions to, 41, 48, 83, 86, 98, 99, 299, 306, 313, 334, 717, 718 financial impacts of, 30, 39, 66, 79, 80, 87–88, 98, 153, 157, 215, 282, 295, 299–300, 302–303, 311–312, 317, 787 German reactions to, 98, 296, 297, 302, 313, 315, 321 global economic trends and, 108, 151, 382, 473, 714, 717 Greek austerity fatigue after, 305, 312, 329, 330 Greek citizens’ reactions to proposals to remedy, 312, 329, 330, 332 IMF and, 60, 117, 311, 312 market reactions to, 288, 289, 299–300, 313 political impact of, 31, 39, 60, 290 possible long-term solutions for, 295–297, 303, 308, 315, 465 roots of, 287, 290–291 single currency issue and, 80, 287, 290–291, 292 Green global economy alternative and renewable energy and, 528, 548, 656 APEC’s promotion of, 87, 102, 103 ASEAN and, 103 blue oceans and, 523 business leaders’ commitment to ethical behavior and, 529 cities in, 844 cost of not pursuing, 542–543 economy restructuring for, 523, 540, 542 green glove example in, 524 green jobs in, 526, 624, 630, 638, 640, 682 952 Green global (continued) d green taxes in, 474, 477 green-tint stimulus packages in, 623, 629 growth and, 33, 42, 86, 87, 102, 103, 114, 526, 543, 842 leadership from developed economies in, 541 manufacturing and, 524, 624, 630, 640, 730 politicians’ failure to address, 540 recovery and, 42, 44 technology and, 87, 102, 359–360, 524, 682, 687, 841 UN report on problems in, 539, 542 See also Environmentalism; Sustainable development Greenspan, Alan, 632, 636, 821 Grexit (Greece’s possible exit from the eurozone), 108, 183, 271, 305, 330, 331, 340, 717, 718, 722, 939 “Green shoots” of recovery, 17, 20, 31, 124, 141, 142–143, 376, 738 Gros, Daniel, 262 Gross, Bill, 385 Group of 20 Seee G-20 nations Growth and Jobs Action Plan (GJAP), Los Cabos G-20 Summit (2012), 96–97, 98 Growth models in China, 69, 339, 730, 859, 862 in developing countries (DCs), 195, 197 export‐led, 449, 706–708, 737, 745 G-20 summit (Pittsburgh, 2009) on, 25 inequality versus, 578–579 investment‐driven, 744 in Malaysia, 525 new middle class (NMC) and, 574 population and, 560, 561 G-7 nations, 24, 406, 455, 468 See also specific nations G-20 nations, 406 Doha Round and, 24, 42, 43, 56, 102, 441, 443, 444 global tax on financial transactions (GTFT) and, 478, 479, 480 growth compact among, at Los Cabos meeting (2012), 98–99 See also specific nations G-20 summits Index Cannes (2011), 83–88, 95, 96 London (2009), 24, 441 Los Cabos (2012), 95–100 Pittsburgh (2009), 23–27, 157, 443, 480, 535 Seoul (2010), 24, 44, 47, 53–57 Toronto (2010), 19, 38, 41–45 Washington, D.C (2008), 441 G‐77 nations, and China, 541, 542 Gyohten, Toyoo, 316 Haberler, Gottfried von, 426 Happiness research, 838–839 Harvard Business School (HBS), 587, 590, 598, 615, 617, 688, 900 Harvard College, 581–582, 583, 585 Harvard University, 527–531, 595–600, 612 constancy of change at, 598-599 EdX at, 596, 598, 613, 618 global presence of, 598 Jeffrey Cheah professorships, fellowship, and travel grants, 603–605 Malaysian connections with, 601–606 as quality education model, 675, 676, 678 Reischauer Institute of Japanese Studies at, 357–358 selectivity of, 597 Hayek, Friedrich, 55, 136, 187, 238, 239, 471, 472, 474, 647 Healthcare Malaysian new economic model (NEM) on, 656, 661 medical tourism and, 567–568 spending on, 110, 111, 209, 272, 524, 574, 580, 789 High frequency traders (HFTs; “cheetahs”), 511–515 High frequency trading (HFT), 511–515 Hogg, Sarah, 509 Holland Seee Netherlands Hollande, Francois, 99, 187, 325, 330, 334 Hong Kong, 29, 79, 166, 173, 215, 258, 321, 408, 415, 420, 425, 431, 433, 438, 439, 563, 567, 573, 598, 645, 647, 724, 832, 916 Honolulu Declaration (APEC; 2011), 86–87 Hoover, Herbert, 442 Housing collapse of market for, 137, 158, 234, 331 CRASH (Conflict, Rates, Asia, Speculation, and Housing) on, 726–727 government policy neglect of, 81 price changes for, 59, 66, 93, 110, 136, 141, 145, 153, 172–173, 184, 210, 271, 277, 338, 580 HSBC, 498, 503, 573, 819 Hungary, 484, 861 Hyperinflation, 38, 386 Hysteresis, 50 IBSA nations (India, Brazil, South Africa), 812 ICAP Plc, 507 Iceland, 343, 344, 420, 465 India, 668 agriculture in, 551 ASEAN Economic Community (AEC) and, 747 asset bubbles and, 154 as BRICS nation, 805–806, 808, 811, 814–815 business environment in, 666, 679, 682, 713 capital controls in, 418, 419 China and, 415, 812, 826, 883 climate change and, 535, 557 consumption in, 75, 152, 172, 362, 381, 395, 548, 707, 774 corruption in, 229, 721, 817, 874, 875, 880, 884 credit rating changes for, 874 currency issues and, 125, 154, 172, 401, 415, 460, 724, 732, 752, 880–881, 882–883 demographic shifts in, 562, 941 as emerging “developing” nation, environmental degradation and, 543 fiscal health of, 338, 773–774, 814–815 fiscal problems of, 321, 420, 717, 719, 721, 726, 727, 731, 816, 822, 851, 861, 875–876, 879–884 fiscal recovery of, 76, 124, 152, 252, 256, 626, 707, 774, 873–877, 921 food supply and, 551 as Fragile Five nation, 726– 727, 731–732, 819, 820 gaming industry in, 914 GDP changes in, 124, 129, 774, 874, 879–880 953 Index global fiscal crises and, 5, 48, 55, 68, 92, 97, 118, 151, 154, 176, 181, 277, 321, 327, 362, 468, 622, 623, 626, 627, 719, 851, 874 global trade and, 32, 48, 186, 441, 622, 706, 707, 717, 750, 763, 826 gold investments in, 381, 389, 394–395, 397 growth in, 5, 29, 30, 32, 45, 61, 74, 75, 90, 92, 120, 166, 179, 194, 252, 278, 323, 338, 350, 362, 405, 429, 686, 706, 713, 716, 719, 727, 729, 806, 873–874, 932, 933 as G-20 nation, 24 income levels in, 577 inequality in, 577, 579, 884 inflation in, 62, 74, 75, 124, 152, 161, 171, 420, 774, 775, 806, 813, 815, 817, 881 innovation in, 663, 686, 687, 691 interest rates in, 448, 721, 733, 882 international monetary system (IMS) and, 401, 405–406 investment in, 679, 721, 816, 881–882 labor force in, 186, 689, 773–774 Malaysia and, 654, 655, 656 manufacturing in, 62, 278, 707, 759, 807 Modi in, 773–775 political changes in, 228, 229, 773–774, 776, 820, 876 politicians (netas) s and bureaucrats (babus) s and reform in, 875 public debt and deficits of, 420, 469, 725, 776, 814, 820, 874 Rio+20 conference (2012) and, 539 stocks in, 215, 419, 622 subsidies in, 173, 774 venture capital in, 691, 699 Indonesia agriculture in, 551 austerity measures in, 296, 314 business environment in, 645 capital controls in, 172, 418 China and, 826, 857 consumption in, 143, 395 currency issues in, 425 demographic shifts in, 941 fiscal health of, 296, 721, 739, 769, 775, 847 fiscal problems of, 623 fiscal recovery of, 11 GDP changes in, 119, 314 as Fragile Five nation, 726– 727, 731–732, 819, 820 global fiscal crises and, 623, 626, 721, 847 global trade and, 737, 763, 826 growth in, 119, 124, 128, 166, 251, 339, 350, 686, 729, 914 income levels in, 748 inflation in, 172, 775, 776 interest rates in, 448 investment in, 819 labor force in, 748 middle class growth in, 166 political changes in, 773, 775–776 productivity in, 686, 776 revenue growth in, 914 wage levels in, 788 Widodo (“Jokowi”) in, 773, 775–776 Inequality inequality versus, 578–579 growth versus, 578–579 increases in, 577–580 Occupy Wall Street (OWS) movement on, 219–223 in United States, 221–222 Inflation asset bubbles and, 153–154 commodities (2009) and, 152–153 emerging developing countries (EDCs) and, 171 eurozone and, 170 hyperinflation in Germany and, 38, 386 impact of, 74–75 Latin America and, 172–173 paradox of symmetrical recovery and, 151–152 quantity theory of money and, 154–155 subsidies and, 173 See also under specific nations Innovation human capital and, 669–670 in Japan, 659–660 in Malaysia, 629, 661–662, 663, 679–682, 687, 691 productivity and, 685 Insider trading, 512, 513, 514 Institute for Security Studies (ISS), 571, 575 Institute of International Finance (IIF), 301, 327, 341, 448, 451 Institutional framework for sustainable development (IFSD), 540, 542 Interest rate swaps, 505, 508, 881, 915 International financial centers (IFCs), 435–439 International Labour Organization (ILO), 10, 558 International Monetary Fund (IMF), 10, 18, 24, 29, 35, 44, 47, 53, 54, 79, 84, 90, 97, 98, 107, 114–117, 120, 124, 127–129, 141, 153, 163, 172, 182, 187, 251, 261, 281, 295, 296, 301, 318, 323, 332, 337, 341, 343, 361, 367, 387, 391, 399, 403, 412, 425, 429, 444, 447, 453, 466, 472, 479, 637, 705, 719, 738, 749, 785, 792, 817, 831, 859, 922, 931 International monetary system (IMS) basic principles of, 399–400 capital controls and, 417–421 currencies in Seee Currency issues exchange rate tensions and, 453–457 gold and, 379–382, 385–388, 393–394 international financial center (IFCs) and, 435–439 Kenen’s rule on reserve currency in, 412, 415 LIBOR rigging scandal and, 501–509 payments deficits and, 402 problems with, 400–401 reform proposals for, 402–403 shadow banking in, 115, 235, 461, 492, 517, 518–519, 520, 848–850, 852, 855, 863, 864, 865, 868 International Organisation of Securities Commissions (IOSCO), 508 Ipoh, 711–712 Iraq, 261, 283 Ireland, 235, 282, 287, 294, 302, 317, 327, 332, 342, 382, 466, 714, 726 Iron Law of Economic Controls (Cohen), 421 Israel, 283, 694 Issing, Otmar, 166 Italy, 668, 714, 726 austerity fatigue in, 319, 326, 332, 787 austerity measures in, 86, 99, 216, 306, 327 bailout proposals for, 80, 84, 344 bank sector problems in, 345 China and, 441 consumption in, 934 954 Italy (continued) d credit rating changes for, 73, 79, 306 debt crisis in, 87, 88, 269, 465 default risk of, 86, 317 demographic shifts in, 559, 561, 562, 941 EURIBOR rates for, 502 European Central Bank (ECB) measures and, 117, 183, 216, 269, 270, 275, 311, 320, 335, 336, 454 eurozone concerns about, 80, 84–85, 98, 183, 216, 294, 299–300, 301, 341, 344 factory activity in, 81 fiscal recovery of, 20, 29, 85, 183, 194, 250, 302, 313, 922, 923 GDP declines in, 36, 111, 276, 281, 306, 332, 449, 811 German reactions to fiscal problems of, 319 global economic trends and, 922 gold reserves in, 396 G-20 nations’ focus on, 84–85, 98 as G-20 nation, 24 growth in, 61, 74, 79, 80, 91, 109, 194, 300, 306, 787, 811, 923, 924 IMF programs for, 79, 84, 85, 117 impact of Greek debt crisis on, 60, 77, 294, 299 impact on eurozone of stagnation of, 117 inflation fears and, 166 lack of fiscal discipline in, 84, 287, 465 manufacturing in, 312 market reactions to financial problems of, 80, 85, 86, 178, 216, 299, 300, 302, 329, 335–336, 337 political unrest in, 117, 319, 329 possible failure of, 84, 90, 294, 301, 329 public debt and deficits in, 183, 216, 282, 287, 295, 299, 300 real income per capita in, 860 recession in, 158, 276, 281–282, 305, 306, 323, 327, 329, 330, 336, 922, 923 unemployment in, 177, 194, 233, 250, 282, 312, 332, 934 It’s Even Worse Than It Looks (Mann and Ornstein), 256 Index Jackson Hole, Wyoming, Symposiums, 207, 279, 353, 726 Jacobsson, Per, 163 Jamaica, 577 Japan, 347–376 Abenomics strategy in, 121, 123, 251, 367–372, 373–376 ASEAN+3 with, 104, 735, 741–746, 755 biflation in, 161 business environment in, 351, 358–359, 686 capital inflows into, 418, 419 China and, 120, 121, 129, 181, 185, 363, 414, 426, 433–434, 449, 450, 826, 835, 837, 843 climate change controls and, 535, 550 consumption in, 143, 351, 741, 933, 934 credit rating changes for, 214 currency issues and, 48, 97, 420, 426, 433–434, 435–436, 448, 449, 450, 455–457, 460, 757, 829–830, 939 deflation in, 11, 37, 128, 143, 144, 159, 160, 161, 283, 349, 350–351, 352–353, 364, 368, 370, 372, 373, 465, 628, 727, 937 demographic shifts in, 364– 365, 373, 556, 559, 561, 562–563, 564, 770, 941 earthquake and tsunami (2011) effects in, 65, 68–69, 72, 74, 89, 170, 355–359, 362, 720, 785 economy restructuring in, 369 education in, 669 elections in, 107, 108 entrepreneurs in, 701 fiscal health of, 349–353, 808 fiscal outlook for, 362–363, 921, 922, 938 fiscal problems of, 65, 68–69, 169, 276, 321, 922 fiscal recovery in, 19, 26, 29, 36, 42, 90, 92, 101, 113, 117, 123, 144, 160, 184–185, 251, 352–353, 361–366, 731, 741–742, 746 fiscal stimulus programs of, 351, 468, 626, 739, 742–743, 815–816 GDP changes in, 92, 185, 195, 246, 276, 365 global economic trends and, 107, 141 global fiscal crises and, 7, 11, 141, 321, 465, 627, 637, 715, 745 global trade and exports and, 62, 63, 87, 92, 104, 138, 152, 276, 426, 433, 443, 447, 460, 622, 705, 706, 750, 755, 807, 811, 837 government bonds of, 175, 214, 720 growth in, 89, 90, 107, 108, 115, 117, 121, 123, 144, 165, 166, 182, 185, 194, 195, 269, 350–351, 359, 363, 449, 706, 720–721, 727, 742, 787, 808, 809, 817, 835–836, 860, 924, 933 as G-20 nation, 24, 26 IMF on recovery in, 361–362 inflation in, 43, 160, 195 innovation in, 659–660, 669, 679, 687, 688, 691 interest rates in, 209, 371 investment in, 769 labor force in, 365 lessons from, 227–228, 426 LIBOR rigging scandal and, 503, 506 “lost decade” of the 1990s in, 138, 144, 145, 155, 350, 426, 457, 742 Malaysian investment by, 655, 656 manufacturing in, 68, 358–359, 826 market reactions to financial problems of, 136, 273 middle class in, 166 mistrust of government in, 356–357 Myanmar and, 798, 802 payments surpluses of, 138, 403, 413, 451 political issues and, 17 political leadership in, 363–364 productivity in, 375–376, 686 public debt and deficits in, 39, 241, 349, 467, 468, 469, 934 quantitative easing in, 154, 251, 283, 368, 370–371, 726, 729, 940 recession in, 10, 11, 137–138, 158, 738, 932, 933, 934 savings rate in, 137, 714 stocks in, 215, 724, 821 three arrows approach in, 368–369 Tokyo as international financial center (IFC) and, 435–439 955 Index venture capital in, 688, 691, 693–694, 697, 701, 702 wages in, 144, 145 World Wars I and II and, 237, 411 yen intervention in, 351–352, 372, 387 Jasmine revolution, Tunisia, 71–72 Jeffrey Cheah Foundation ( JCF), 603, 604–606 Jeffrey Cheah Institute on Southeast Asia ( JCI), 609 JOBS Act ( Jumpstart Our Business Startups Act), US, 700–701 Johnson, Lyndon, 399 Johnson, Paul, 551 Johnson, S., 714 Jordan, 72 Jorgenson, Dale, 686, 713 JPMorgan Chase, 255, 257, 497, 503, 519, 625, 633, 822, 868, 910 Kahneman, Daniel, 94, 201, 228 Kan, Naoto, 349, 351 Kay, John, 217–218, 237 Kazakhstan, 104 Kenen, Peter, 412, 415 Kennedy, Robert, 599, 838 Keynes, John Maynard¸ 3, 7, 11, 12–14, 30, 49, 72, 136, 137, 144, 149, 237–238, 239, 240, 241, 242, 321, 368, 385, 392, 393, 396, 551, 616, 617, 628, 638, 708, 740, 926 Keynesian economics, 11, 55, 234, 247, 319, 334 Keynesianism, 240–242, 307 Kharas, Homi, 571, 573 Khor, Martin, 540, 542 Khurana, Rakesh, 588, 590 Kickstarter, 700 Kindleberger, Charles, 631 King, Sir Mervyn, 490–491, 493, 509 Kodak, 899–903 Kristof, Nicholas D., 256 Krugman, Paul, 11, 18, 20, 30, 38, 99, 110, 145, 164, 188, 199, 220, 231–235, 256, 271, 291–292, 324, 326 Kuala Lumpur, as hub, 567, 667, 689–790 Kuznets, Simon, 578, 838 Kuznets curve, 578 Kuroda, Haruhiko, 95, 371, 376 Kwanho, Shin, 69, 808 Kyoto Protocol, 534, 542–543 Labor force See under specific nations Lagarde, Christine, 283, 776–777, 922 Laos, 128, 623, 626, 686, 748, 792, 826, 857 Layering, 513, 514 League of Nations, 163 Lee Kuan Yew, 660 Leeper, Eric, 209 Lehman Brothers, 4, 79, 295, 362, 394, 490, 492, 500, 621, 634, 887 Lenin, Vladimir, 402 Lerner, Josh, 687, 688, 694, 701 Lewis, Harry, 581, 582–583 Lewis, Ken, 889 Lewis, Michael, 511, 513, 514 LIBOR, 181, 498, 501–509 Libya, 67, 71, 171 Li Keqiang, 252 Lisbon Council, 84 “List of 54 Environmental Goods” (APEC, Vladivostok, 2012), 103 Lit-pools, 513, 515 Livability Index, 438 Lloyds Banking Group, 507 London, as hub, 437–438, 439, 702 London G-20 Summit (2009), 24, 441 London Interbank Offered Rate (LIBOR), 181, 498, 501–509 London Bullion Market Association (LBMA), 381–382 “London Whale” trading loss, 497, 498, 499 Los Cabos Growth and Jobs Action Plan (GJAP), 96–97, 98 Los Cabos G-20 Summit (2012), 95–100 Louvre Accord (1987), 419 Lowflation, 283 Lucas, Robert, 147 Luxembourg, 326, 439 Macau, 432, 832, 914 Madoff, Bernie, 4, 498, 581, 587, 589, 622, 625, 740 Magnus, George, 226 Mahathir Mohamad, 232, 631, 636, 659 Malaysia, 619–702 anticompetitive practices law in, 643–648 austerity measures in, 314 budget deficits in, 627–628 business environment in, 32–33, 167, 173, 362, 523–525, 611, 626, 651–652, 667 capital controls in, 172, 419 China and, 826, 857, 867 corporate governance in, 893–897 creativity in transformation of, 659–662 currency issues and, 183, 432, 460, 831, 883, 939 demographic shifts in, 567 economic restructuring in, 14, 523, 525, 629–630, 650–651 economic transformation program (ETP) in, 665, 667–668 education system and training in, 612, 624, 629, 651, 661, 669, 673, 677 F&N Holdings (FNH) in, 905, 906, 907, 909 fiscal health of, 7, 8, 12, 136, 166, 167, 186, 251, 626, 705, 721 fiscal problems of, 251, 623, 705, 725 fiscal recovery of, 12, 13, 14, 20–21, 167, 469, 523, 625–630, 635–636, 736, 739 fiscal stimulative package in, 623–624, 626, 627–630, 637–641, 739, 749 GDP changes in, 92, 119, 314 global fiscal crises and, 227, 622–623, 625–626, 627, 631–632, 721, 763 global trade and, 87, 186, 363, 705, 721, 737, 750, 763 gold investments in, 389 government transformation program (GTP) in, 665, 667, 668 green industry in, 524–525 growth in, 32, 33, 110, 119, 128, 166, 186, 251, 339, 350, 362, 363, 686, 724, 729, 737, 738, 860, 914 Harvard University connections with, 601–606 income levels in, 425, 575, 577, 736, 748 inflation in, 62, 143, 172, 628 innovation in, 629, 661–662, 663, 679–682, 687, 691 investment in, 389, 688, 743, 905 labor force in, 33, 186, 523, 526, 627, 629, 662–664, 673, 680–681, 685–690, 748 medical care in, 567, 568 Najib’s New Way forward in, 650–652 956 Malaysia (continued) d national transformation in, 665–670 “nasi‐lemak” principle in, 656, 657 new economic model (NEM) in, 32–34, 124, 470, 650–651, 652, 653, 659, 665, 667, 673, 690, 691 oil taxes in, 931 political unrest in, 228 productivity in, 685–686 revenue growth in, 914 savings rate in, 136, 137, 469–470 social changes in, 575, 581, 584, 599–600, 665, 668 stocks in, 724 universities in, 597, 599–600, 603–606, 649, 651, 673–678 venture capital in, 687–688, 693–696, 697–702 wage levels in, 788 Malaysia Competition Commission (MyCC), 643, 645–648 Malaysia Plan (10th, 2011–2015), 14, 629, 654, 659 Manufacturing See under specific nations Markit Economics, 80 Markit indices, 91, 109, 246, 270, 276, 302 Marx, Karl, 225–226, 229, 238, 240, 571, 573, 578 Marxism, 798, 841 Master limited partnerships (MLPs), 253 Master of business administration (MBA) degree, 587–592 McCraw, Thomas, 616–617 McKay, Huw, 435–436 McKinnon, Ronald, 450, 830 McKinsey & Company, 802 McKinsey Global Institute, 685 Medical tourism, 567–568 Medicare, 209, 221, 245, 273 Mekong‐4 nations (Cambodia, Laos, Myanmar, Vietnam), 128 See also specific nations Melbourne University, 677 Merkel, Angela, 314, 317, 325, 330, 345 “Merkozy” Plan, 317 Merrill Lynch, 621, 635, 726, 914 Mexico, 24, 87, 97, 418, 453, 460, 465, 555–556, 622, 724, 725, 727, 732, 807, 818, 884 Index Middle class, 571–576 activism of, 229, 573–574 in China, 166, 172, 572–573, 575, 576 global versus developing, 572 growth and, 574 in India, 166, 172, 572–573, 575, 576 new middle class (NMC), 571–576 Middle East, 24, 65, 67, 101, 107, 111, 169, 170, 171, 175, 193, 219, 227, 229, 231, 271, 629, 666, 775, 852, 914, 938 Middle East and North Africa (MENA), 67, 71, 89, 409 Middle‐income economies (MIEs), 666 Mill, John Stuart, 226 Mills, Quinn, 589, 590–591 Minsky, Hyman, 148, 149 MINT nations (Mexico, Indonesia, Nigeria, and Turkey), 818 See also specific nations Mitterand, Francois, 418 Models Seee Economic models; Growth models Moody’s Investors Service, 79, 213, 214, 243, 244, 276, 301, 306, 318, 320, 337, 467, 485, 767, 771, 782, 814, 900 Morgan, J P Jr., 505 Morgan Stanley, 731, 732, 819, 914 Morgenthau, Henry Jr., 392, 474 Mori Memorial Foundation, 438 Modi, Narendra, 773–774 Multilateral currency swaps, 97, 408, 415, 433, 706, 757, 758 Myanmar, 108, 128, 561, 623, 626, 686, 748, 791–795, 797–803, 826, 857 Najib Razak, 637, 638, 640, 649, 650, 652, 654, 661–662, 665 “Nasi‐lemak” principle, 656, 657 National Bureau of Economic Research, US, 130, 282, 491, 621 National People’s Congress (NPC), China, 867–868 Netherlands austerity measures in, 323, 324, 327 bond yields in, 370 fiscal problems in, 329 global economic trends and, 184 gold holdings of, 388 growth in, 122 manufacturing in, 312 market reactions to financial problems of, 342 political unrest in, 325, 326 recession in, 305, 306, 323, 327 New Deal, 220, 241, 640 New economic model (NEM), Malaysia, 32–34, 470, 650–651, 652, 653, 659, 665, 667, 673, 690, 691 New protectionism, 442–443 New York City, as international financial center (IFC), 437, 438 New Zealand, 87, 433, 565, 750, 752, 907 Nguyen, Tan Dung, 779, 780 Nigeria, 557, 818, 819, 939 Nixon, Richard, 240, 379, 386, 393, 412, 448 Nomura, 167, 808 North Africa, 67, 71, 89, 409, 547 North Atlantic Treaty Organization (NATO), 10 Norway, 294, 455, 457 Nuclear energy plants, 68, 72, 92, 357, 358, 528 Fukushima Dai‐ichi disaster, Japan, 72, 92, 355, 356, 358 Obama, Barack, 10, 11, 53, 59, 107, 237, 247, 259, 441, 442, 444, 467, 468, 473, 489, 495, 527, 531, 534, 535, 544, 577, 585, 616, 649, 660, 831, 838 Obamacare (Affordable Care Act), 257, 258, 259 Occupy Wall Street (OWS) movement, 219–223 Office of the Controller of the Currency (OCC), US, 495, 496 Oil Arab Spring’s impact on, 72 BP oil spill, 888 impact on world economy of, 67 Middle East and North Africa (MENA) production of, 67–68 price changes for, 74, 75, 96, 152, 170, 171, 227, 250, 261, 271, 456, 486, 529, 547, 548, 627, 774, 775, 788, 793, 813, 921, 924, 931–934, 938, 940 One-child policy, China, 561, 856 O’Neal, Paul, 587 Organisation for Economic Co‐operation and 957 Index Development (OECD), 19, 29, 38, 60, 74, 84, 90, 91, 92, 93, 108–109, 114, 117, 120, 124, 143, 181–182, 195, 196, 269, 327, 418, 429, 493, 571, 577, 787, 859, 913, 914 Ornstein, Norman, 256 Osborne, George, 188 Pakistan, 151, 465, 774 Paradox of deleveraging, 145 Paradox of falling wages, 145 Paradox of thrift, 137, 144, 708, 732, 821 Parliamentary Commission on Banking Standards, UK, 509 Paulson, Henry, 587 Peer-to-peer (P2P) lending, 518 People’s Bank of China (PBoC), 339, 433, 460–461, 462–463, 829, 830–831, 832, 849, 850, 863–864 Peru, 87, 183 Peterson, Peter, 889 Philippines, 615, 761–765 austerity measures in, 296, 314 capital controls in, 54, 418 China and, 826, 857 consumption in, 143 credit rating for, 765 currency issues and, 183, 752, 883 fiscal health of, 739, 762, 764, 847 fiscal problems of, 623 GDP changes in, 119, 314 global fiscal crises and, 626, 721, 847 global trade and, 737 growth framework for, 763–764 growth in, 110, 124, 128, 166, 251, 339, 350, 362, 686, 729, 762–763, 860 income levels in, 577, 748 interest rates in, 448 labor force in, 748 productivity in, 686 revenue growth in, 914 PIIGS nations (Portugal, Ireland, Italy, Greece, Spain), 60–61, 287–288, 289, 465–466, 726 See also specific nations Piketty, Thomas, 578–580 PIMCO, 160, 163, 225, 245, 255, 385, 714 Pinging the markets, 513, 514 Pinker, Steven, 322 Pittsburgh Accord (2009), 41 Pittsburgh G-20 Summit (2009), 23–27, 157, 443, 480, 535 Plaza Accord (1985), 387, 419, 448, 451, 829–830 Plucker, Jonathan, 660–661 Poland, 320 Population aging of, 562–563 fertility rates and, 555–556, 559–560, 561, 562, 563 myths about, 560–561 See also Demographic shifts Portugal, 255, 726 austerity fatigue in, 332 austerity measures in, 306 bailout programs for, 73, 216, 270, 289, 317, 324, 343, 344 credit rating changes for, 289 European Central Bank (ECB) measures and, 117 eurozone concerns about, 294 fiscal problems of, 66, 166, 282, 294, 299, 344, 465 fiscal recovery of, 66, 302 GDP declines in, 306, 332 government bonds of, 301 growth in, 787 impact of Greek debt crisis on, 60, 77, 289, 294, 299, 714 industrial output in, 109, 235 inflation fears and, 166 lack of fiscal discipline in, 287, 465–466 market reactions to financial problems of, 302 possible failure of, 30, 289 public debt and deficits in, 61, 289, 295, 299, 300 recession in, 305 stocks in, 111 unemployment in, 116, 250, 332 wage declines in, 283 Price of Civilization, Thee (Sachs), 220, 225, 232–233 Protectionism, 441 Asian economies and, 186, 367, 706 China as focus of, 444, 448 G‐20 and, 24, 56, 96, 102, 103, 443, 444 IMF/World Bank meeting (2009) on, 444 India and, 774 Indonesia and, 776 Japan and, 369 managed trade measures (new protectionism) and, 442–443 political pressures for, 43, 323, 441, 925 “stealth” measures in, 751, 752 United States and, 226, 441, 442, 472 tariffs of 1930s and, 441, 444–445, 472 Public–private partnerships (PPPs), 764, 765 Purchasing power parity (PPP), 423–427, 730, 808–809 Purchasing managers indices (PMIs), 91, 171, 246, 270, 302, 718, 848 Putin, Vladimir, 104, 108, 811, 932 Quality of life, 567 Quantitative easing (QE) deflation and, 160 economic impact of, 154, 155, 234, 249–254, 312, 394, 465, 751, 934 emerging economies and, 251, 421, 448, 729 in eurozone, 181, 250, 283–284, 320, 923, 939 in Germany, 320 in Japan, 154, 251, 283, 368, 370–371, 726, 729, 940 in United States: initial phase (QE1), 253 scaling back or tapering, 128, 249, 252–253, 255, 818 second round (QE2; QEII), 49, 50, 54, 55, 60, 62, 158, 160, 170, 171, 209, 253, 282, 400–401, 408, 713–714 third round (QE3), 119–120, 122, 125, 182, 184, 249, 250, 252, 253, 275, 327, 385, 723, 731, 790 Quantity theory of money (QTM), 154–155 Rabobank, 507 Rajan, Raghuram, 715, 873–874, 875, 881 Rasiah, Rajah, 662 Rasmussen, Lars, 536 Reagan, Ronald, 222, 240, 262, 443, 662, 694, 898 Recession double-dip, 18, 35, 36, 38, 42, 45, 60, 67, 74, 78, 99, 101, 116, 157–158, 159–160, 179, 214, 235, 237, 238, 241, 243, 246, 301, 303, 351, 465, 474, 787, 807, 832 shadow of, 80–82 See also under specific nations Regional Comprehensive Economic Partnership (RCEP), 750–751 Reinhart, Carmen, 188–189, 190, 210, 474, 715 958 Reischauer Institute of Japanese Studies, Harvard, Digital Archive, 357–358 Republican Party, 107, 199, 217, 221, 226, 245, 256, 257, 258, 259, 305, 491, 712 Reserve Bank of India (RBI), 774, 874, 880–881, 882 Rio Earth Summit (1992), 477, 539–540, 541–542, 543 RIO+20 (UN Conference on Sustainable Development, Rio de Janeiro, 2012), 539, 540–541, 544 Roach, Stephen, 315 Robbins Report, 674 Rodrik, Dani, 309, 479, 687 Rogoff, Kenneth, 188–189, 190, 312, 474, 715 Rohatyn, Felix, 889 Roosevelt, Franklin D., 12, 19, 241, 442, 474, 622, 640 Rosovsky, Henry, 602 Roubini, Nouriel, 3, 18, 142, 158, 382, 396, 626, 634, 860, 937 Royal Bank of Scotland, 507, 889, 896 Russia agriculture in, 548, 550, 551 as BRICS nation, 805–806, 811, 813, 819 China and, 415, 812 currency issues and, 367, 401, 414, 415, 453, 457, 460 Cypriot fiscal problems and, 341, 342, 343, 345 demographic shifts in, 559, 561, 562, 563, 564, 813, 941 as emerging “developing” nation, 8, 151, 171 fiscal problems in, 127, 136, 151, 176, 256, 420, 465, 813, 816, 817, 822, 851, 922, 932, 938 food supply and, 551 GDP declines in, 252, 932 global fiscal crises and, 5, 247, 252, 277, 468, 480, 623, 626, 719, 813, 821, 851, 939 global trade and, 62, 102–105, 152, 181, 339, 441, 547, 548, 717, 731, 813 government‐managed economy of, 148, 149 growth in, 5, 30, 108, 171, 176, 179, 182, 194, 713, 719, 727, 729, 921 as G-20 nation, 24 income levels in, 573, 575 inflation in, 152, 171, 806, 813 international monetary system (IMS) and, 401 Index investment in, 97, 105, 816, 817 oil prices and, 813, 932, 938 political unrest in, 108, 232, 547, 781 public debt of, 465, 874 Ukraine and, 127, 129, 261, 281, 938 Ryan, Paul, 188 Sachs, Jeffrey, 44, 95, 220, 222, 225, 231, 232–234, 349, 435, 542, 544 Sakakibara, Eisuke, 349, 353 Samuelson, Paul, 12, 142, 150 Sarkozy, Nicolas, 83–84, 317, 325, 444, 670, 838 Saudi Arabia, 24, 67, 72, 420, 484, 486, 938 Savings impact of global economy on, 135–136 paradox of thrift and, 137, 144, 708, 732, 821 See also under specific nations Schauble, Wolfgang, 473 Schelling, Thomas, 528, 531 Schulz, Martin, 314 Schumpeter, Joseph, 150, 524, 616–617, 670, 749, 782, 902 S‐curve effect, 573 Securities and Exchange Commission (SEC), US, 495, 496, 512, 513, 514, 634, 635 Sen, Amartya, 549, 838, 876, 883 Seoul Action Plan (SAP), 54–56 Seoul Development Consensus (SDC) for Shared Growth, 56 Seoul G-20 Summit (2010), 24, 44, 47, 53–57 Shadow banking, 115, 235, 461, 517, 518–519, 520, 848–850, 852, 855, 863, 864, 865, 868 Shanghai, 415, 432, 435, 598, 669, 832, 844, 870 Shanmugaratnam, Tharman, 925 Sharma, Ruchir, 111, 820, 865 Shiller, Robert, 13, 150, 475, 634 Shirakawa, Masaaki, 375 Sifma, 213, 255 Singapore asset bubbles and, 154 business environment in, 439, 645, 694, 896, 916, 917 China and, 826, 857 currency issues and, 183, 425 demographic shifts in, 789 education in, 598, 669, 673 F&N Holdings (FNH) and, 905–911 fiscal problems of, 321, 623, 705 fiscal recovery of, 739 gaming industry in, 914 global fiscal crises and, 626 global trade and, 87, 321, 622, 705, 737, 763 gold investments in, 389 growth in, 686, 737, 738, 809, 914 income levels in, 577, 748 inflation in, 143, 172, 173 investment in, 438, 769, 905 LIBOR rigging scandal and, 506, 507, 508, 509 as livable city, 438, 439, 844 manufacturing in, 739 medical tourism and, 568 productivity in, 686 revenue growth in, 914 Singapore Exchange Ltd (SGX), 916–918 Sirivadhanabhakdi, Charoen, 905–906, 909–911 Skidelsky, Robert, 149, 154, 237–238, 241, 242, 468 Slovakia, 310 Smith, Adam, 226, 647 Smoot–Hawley Tarifff Act (1930), 441, 442, 472 Social security programs, 51, 209, 221, 245, 273, 364–365, 563, 845, 855 Solow, Robert, 468, 615 Soros, George, 473, 491 South Africa agriculture in, 551 as BRICS nation, 805–806, 811 business environment in, 896 China and, 460, 812–813 corruption in, 817 currency issues and, 125, 247, 401, 882 fiscal problems of, 127, 181, 252, 339, 727, 731, 814, 816, 819, 822 food supply and, 551 as Fragile Five nation, 726– 727, 731–732, 819, 820 GDP declines in, 252, 814 global fiscal crises and, 181, 256, 277, 339, 717, 726, 727, 817, 821, 861, 939 global trade and, 731, 806, 812–813, 826 gold discovery in, 386 growth in, 118, 429, 717, 727, 729, 730, 806, 913 as G-20 nation, 24 inflation in, 806, 813, 814 international monetary system (IMS) and, 401 investment in, 816, 819 959 Index political unrest in, 781, 814, 819, 822 public debt and deficits in, 820, 874 Southeast Asia (SEA) research and teaching, 603–606 South Korea ASEAN+3 with, 104, 735, 741–746, 755 austerity measures in, 314 business environment in, 487, 694, 759–760 capital controls in, 54, 172, 418, 419 China and, 415, 755, 826 consumption in, 143, 172 currency issues and, 172, 183, 415, 433, 448, 460, 622, 757, 831, 883, 937 demographic shifts in, 559, 560, 561, 941 education in, 669 fiscal health of, 376, 705, 725, 745, 746 fiscal problems of, 321, 577, 627, 705, 755, 807 fiscal recovery of, 755–760 fiscal stimulus program of, 739, 745 GDP declines in, 314 global fiscal crises and, 755, 756–757, 807 global trade and exports and, 72, 104, 152, 186, 227, 321, 338, 622, 705, 727, 750, 755, 758, 763, 826 growth in, 69, 79, 118, 121, 186, 338, 363, 405, 686, 755, 807, 809, 914 as G-20 nation, 24 happiness research on, 838 income levels in, 563, 874 inflation in, 62, 75, 143, 171 innovation in, 656, 679 investment in, 215, 697, 725, 744 Japan and, 376 manufacturing in, 278, 666, 716, 826 political unrest in, 107, 573 productivity in, 686 public debt of, 469 revenue growth in, 914 Soviet Union, collapse of, 406, 560 Spain, 255, 726 austerity measures in, 99, 183, 306, 326, 331, 787 bailout proposals for, 80, 99, 289, 344, 717 bank sector problems in, 345 consumption in, 934 credit rating changes for, 66, 289, 306, 484 debt crisis in, 269, 466 default risk of, 317, 714 deflation fears and, 282 demographic shifts in, 941 elections in, 73 European Central Bank (ECB) measures and, 117, 183, 216, 269, 270, 275, 320, 454 eurozone concerns about, 216, 294, 299–300, 301, 341, 344 GDP declines in, 36, 276, 306, 331, 332 German reactions to fiscal problems of, 319, 333 G-20 Summit, Pittsburgh (2009), attendance by, 24 growth in, 61, 91, 109, 300, 787 IMF programs for, 79 impact of Greek debt crisis on, 77, 288, 289, 294, 299, 714 industrial output in, 109 inflation fears and, 166 lack of fiscal discipline in, 287, 466 manufacturing in, 312 market reactions to financial problems of, 66, 80, 86, 178, 302, 335, 337, 342 political unrest in, 183, 219, 331 possible failure of, 30, 60, 80, 90, 301, 323, 329, 714 public debt and deficits in, 42, 61, 66, 289, 300 real income per capita in, 860 recession in, 183, 276, 323, 324, 327, 329, 330 unemployment in, 50, 116, 117, 194, 219, 233, 247, 250, 300, 312, 319, 324, 331, 332, 336, 574, 713 Special Drawing Rights (SDRs), IMF, 84, 86, 387–388, 400, 403, 412, 413, 414, 415–416, 794, 806, 812 Special economic zones (SEZs), 374, 375 Spence, Michael, 223 Spoofing, 513, 514 Stag‐deflation, Stagflation, 173, 311 Stagnation, 36, 37, 109, 113, 117, 130, 175, 190, 194, 241, 270, 300, 339, 350, 375, 443, 473, 773, 825, 921, 923 Sta Maria, Rebecca Fatima, 749 Standard & Poor’s (S&P), 73, 116, 213–214, 244, 260, 269, 289, 291, 293, 301, 305, 308, 312, 318, 320, 324, 765, 782, 874 Stiglitz, Joseph, 18, 30, 38, 50–51, 150, 220, 241, 324, 326, 333, 420, 450, 468, 491, 616, 687, 838, 860 Stock, James H., 210 Strauss‐Kahn, Dominique, 418 Subramanian, Arvind, 125 Subsidies, 173, 774 Summers, Lawrence, 57, 60, 188, 207, 217, 253, 263, 324, 531, 678, 922, 937 Sunway institutions, 604, 605–606 Surprise index (Credit Suisse), 75 Sustainable development APEC and, 103 call for action on, 542 funding for, 477, 478, 541 goals (SDGs) for, 540, 541, 542 growth and, 42, 44, 114 initiatives on, 477, 540, 542, 701, 812, 850 institutional framework for (IFSD), 540, 542 politicians’ failure to address, 107 RIO+20 conference (2012) on, 539, 540–541, 544 UN commission (UNCSD) on, 477, 542 See also Environmentalism; Green global economy Swan, Wayne, 917–918 Swaps credit default swaps (CDSs), 216, 293, 484, 490, 589, 623, 633, 737 interest rate swaps, 505, 508, 881, 915 multilateral currency swaps, 97, 408, 415, 433, 706, 757, 758 Sweden, 353, 455, 457 SWIFT (Society for Worldwide Interbank Financial Telecommunication), 326–327, 431 Swiss franc, 352, 425, 453–454, 462, 940 Swiss National Bank (SNB), 352, 453–454, 455, 456, 490, 940 Switzerland, 352, 425, 448, 453–454, 455, 456, 503, 507, 940, 941 Syria, 72, 107, 108, 111, 261, 283, 725, 812 Taiwan asset bubbles and, 153 capital controls in, 418 960 Taiwan (continued) d China and, 826 consumption in, 143 currency issues and, 425, 883 demographic shifts in, 560 fiscal health of, 166, 705, 883 fiscal problems of, 227, 321, 622, 627, 705, 807 global trade and, 186, 227, 321, 622, 763, 826 growth in, 363, 686, 809 inflation in, 143 innovation in, 656 manufacturing in, 278, 338, 666, 716, 826 productivity in, 686 stocks in, 215 Takahashi, Korekiyo, 369 Taleb, Nassim, 631 Tankan survey, 92, 195, 359, 364, 721, 738 Targeted easing, in China, 93 Taxes global tax on financial transactions (GTFT), 478, 479, 480 Greek avoidance of, 247, 313 green approach to, 474, 477 international financial center (IFC) and, 437 venture capital and, 701 Taylor, John, 632 Taylor rule, 632 Tea Party, 220, 223, 256, 273, 305 Technology green approach to, 87, 102, 359–360, 524, 682, 687, 841 transfers of, 409, 534, 535, 540, 541 Technology Action Fund, 535 Telenor, 798 Thailand, 785–790 austerity measures in, 296, 314 business environment in, 645, 739, 786, 789, 896 capital controls in, 54, 172, 418 China and, 826, 857 consumption in, 143, 789 currency issues and, 183, 367, 425, 433, 453, 752, 831, 915, 937 demographic shifts in, 789 fiscal health of, 296, 362, 623, 626, 721, 739, 785–790, 847 fiscal problems of, 727, 746, 786 food demand and prices in, 548 GDP changes in, 119, 314, 721 global fiscal crises and, 626, 721, 787–788, 790, 847 Index global trade and, 48, 705, 737, 763 growth in, 119, 124, 128, 166, 251, 339, 350, 362, 686, 721, 729, 737, 738, 785, 860, 914 income levels in, 748 inflation in, 143, 172, 785–786 labor force in, 748, 788–789, 896 productivity in, 686 recession in, 724 revenue growth in, 914 stocks in, 724 Thain, John, 587 Thatcher, Margaret, 240, 333, 417 Third Plenum reforms (2013), China, 124, 853–858, 859, 869–870 Thrift, paradox of, 137, 144, 708, 732, 821 See also Savings Tiger (Tracking Indexes for the Global Economic Recovery), 121 Tobin, James, 478–479 Tobin tax, 228, 478–479 Tocqueville, Alexis de, 858 Tohoku, Japan, earthquake and tsunami (2011), 65, 68–69, 72, 89, 170, 171, 355–360 “Too big to fail” (TBTF) banks, 489–491, 495, 497–500 Toronto Accord (2010), 41–42, 43 Toronto G-20 Summit (2010), 38, 41–45 Torrance, E Paul, 659, 660 Total fertility rate (TFR), 559–560, 561, 562, 563 Total social financing (TSF), in China, 114–115, 848, 863 Trade Promotion Authority, 751 Trans‐Pacific Partnership (TPP), 87, 104, 369, 750 Transparency International, 313 Trichet, Jean‐Claude, 25, 166, 208, 490 Tripartite Monetary Agreement (1936), 386 Tunisia, 71–72, 171, 547 Turkey BRICS nations including, 807 capital controls in, 418 capital inflows into, 125 corruption in, 818, 822 currency issues and, 183, 457, 460, 922 as emerging market economy (EME), 127, 418, 723, 725, 861 fiscal problems in, 725, 818, 820 as Fragile Five nation, 726– 727, 731–732, 819, 820 Greece and, 293, 294 as G-20 nation, 24, 97 investment in, 819 as MINT nation, 818 new middle class (NMC) in, 575 political unrest in, 819, 820, 822 UBS, 498, 503, 507, 508 Ukraine, 127, 129, 193, 261, 281, 283, 460, 465, 562, 822, 861, 938 Undergraduate education, 673–678 Unemployment See under specific nations United Arab Emirates, 30, 382, 483, 547, 573 United Kingdom austerity measures in, 66, 157, 327 bank run in, 635 Big Mac index on, 424 corporate governance in, 888, 889, 890, 896 creativity development in education in, 661 credit rating changes for, 214, 306, 484–485 demographic shifts in, 465, 562 domestic financial regulation in, 437, 505, 508 EU membership rejection by, 318 fiscal health of, 937 fiscal outlook for, 141, 465 fiscal problems in, 11, 66, 107, 188, 190, 485 fiscal recovery of, 26, 29, 108, 208, 369 fiscal restraint in, 55, 190 food waste in, 550 GDP declines in, 36, 246, 449 global economy and, 141, 151, 787, 835, 836, 937 global markets and, 38–39 gold standard and, 386 global tax on financial transactions and, 478 government bonds of, 175, 216, 258 growth in, 29, 108, 449, 474, 787, 835, 836 as G-20 nation, 24, 26, 479 IMF on fiscal policies of, 190 income tax rates in, 474 international monetary system and, 388, 392, 402–403, 417, 438, 457 LIBOR scandal in, 501–502, 503, 507, 509 MBA education and, 587 961 Index peer-to-peer (P2P) lending in, 518 public debt of, 42, 714 public policy research in, 839 quantitative easing in, 283, 450, 925 real income per capita in, 860 recession in, 10, 158, 323, 327, 330, 637 shadow banking in, 517 stocks and investments in, 78, 79 Thatcher reforms in, 333, 417 unemployment in, 177, 233 university education in, 674 venture capital in, 699 wages in, 940 Wimbledon effect and, 438 World Wars I and II and, 237 UK Financial Conduct Authority (FCA), 505, 508 UK Financial Services Authority, 503, 505 UK Parliamentary Commission on Banking Standards, 509 UN Climate Change Conferences Cancún, Mexico (2010), 536 Copenhagen (2009), 24, 25, 32, 533, 535–536 UN Commission on Sustainable Development (UNCSD), 477, 542 UN Conference on Environment and Development (UNCED) (called Rio Summit; 1992), 477, 539–540, 541–542, 543 UN Conference on Sustainable Development, Rio de Janeiro (2012) (called RIO+20), 539, 540–541, 544 UN Environment Programme (UNEP), 539, 542 UN Food and Agriculture Organisation (FAO), 548, 549, 557 UN Experts Working Group on Finance, 541 United States agriculture in, 103, 115, 548 austerity measures in, 90, 99, 165, 188, 628 Big Mac index on, 424 budget deficit in, 244–245, 247–248, 272–273 business funding in, 700–701 capital inflows into, 418 China and, 87, 167, 443, 448–450, 826–827, 837 consumption in, 30, 31, 36, 37, 59, 136, 138, 141, 143, 708, 787, 813 credit rating changes for, 116, 213–216, 243, 244, 269, 466–467, 484–485 currency war and, 51, 54, 151, 724 deficits in, 26, 45, 50, 164, 189, 303, 305, 402, 413, 473, 732–733 deflation in, 11, 37, 143, 159, 160, 628 demographic shifts in, 559, 561–563 domestic financial regulation by, 437 education in, 669 elections in, 326 emerging economies and, 152 exchange rates and, 423, 825 fiscal health of, 73, 122, 125, 176, 250, 485 fiscal problems in, 11, 98, 113, 157, 216–217, 264, 271, 443 fiscal recovery in, 5–6, 17, 18, 26, 29, 36, 42, 49, 60, 63, 91, 93, 108, 120, 121, 142, 145, 159–160, 176, 208, 263, 277, 279–280, 289, 621, 637, 713, 718, 731 fiscal stimulus packages in, 19, 30, 63, 99, 121, 145, 154, 228, 468, 471–472, 622 food waste in, 550 GDP changes in, 18, 113, 115, 141, 262, 277, 295, 718–719, 742 global economic activity and, 127–128, 141, 434, 731 global fiscal crises and, 5, 7, 234–235, 338–339, 468–469 global growth and, 176, 787, 809 global leadership by, 274 global markets and, 38–39, 72, 157 global recovery and, 17–18, 32, 37–38, 63, 101, 114, 120, 144, 193, 465, 653, 727–728 global trade and exports and, 49, 55, 62, 87, 104, 350, 362, 426, 441, 443, 472, 535, 548, 622, 716, 746, 750–751, 786, 807, 826–827 gold standard in, 379, 380, 386–388, 391 government bonds in, 175 Greek debt crisis and, 83 growth deficit in, 261–262 growth prospects for, 45, 55, 81, 713–714 growth rates in, 20, 36, 59, 62, 66, 86, 89, 90, 91, 108, 122, 142, 151, 182, 184, 194, 208, 238, 269, 323, 400, 715, 718–719, 770, 787, 809 as G-20 nation, 24 happiness research on, 838 housing market in, 81, 136, 226, 262, 740 IMF on fiscal policies of, 190 income levels in, 226 income tax rates in, 474 inequality in, 220–221, 233, 578 inflation in, 43, 67, 130, 159– 160, 170, 263–264, 449 interest rates in, 19, 209 international monetary system and, 145, 388, 402–403, 406 investment in, 688 investment outflow from, 47, 49, 655 Kyoto Protocol and, 534 labor force in, 10 LIBOR rigging scandal and, 506 market reactions to, 78, 79, 255 mistrust of the system in, 13 monetary easing in, 61 “new normal” (2009) for, 163–165 political issues and, 17, 228 poverty in, 221–222 productivity in, 272, 685, 686 public debt of, 189, 247, 256– 258, 473–474, 787, 788 quantitative easing in See Quantitative easing real income per capita in, 860 recession in, 5, 10, 12, 61, 79, 81, 118, 138, 141, 145, 179, 271, 625, 627, 637, 718, 741, 807 regulatory failures of, savings in, 137, 469, 708 shadow banking in, 849 stocks in, 78 tariffs and import barriers in, 55 unemployment in, 5–6, 17, 49, 50, 86, 115–116, 188, 208 university education in, 674 venture capital in, 688, 693–694, 699 wages in, 86, 940 world banker role of, 407, 421 as world’s largest economy, 57, 101, 406, 715–716 US Census Bureau, 221, 226, 553 US Congressional Budget Office (CBO), 176, 235, 244–245, 272, 273, 277, 719 962 US Department of Commerce, 208 US Federal Reserve Bank (Fed), 4, 11, 20, 36, 49, 50, 51, 59, 69, 78, 81, 91, 116, 120, 122, 130, 141, 142, 143, 158, 159, 160, 161, 169, 170, 181, 182, 184, 196, 200, 207, 208, 209, 210, 215, 228, 246, 249, 252, 253, 254, 255, 261, 263–264, 271, 273, 275, 279–280, 281, 327, 338, 353, 368, 370, 385, 388, 407, 448, 449, 471, 489, 490, 492, 495–496, 500, 530, 621, 625, 631–632, 634, 635, 713, 718, 719, 724, 725, 728, 738, 729, 732, 733, 738, 751, 752, 790, 818, 819–820, 880, 882, 915, 925, 941 US JOBS Act ( Jumpstart Our Business Startups Act), 700–701 US National Bureau of Economic Research, 130, 282, 491, 621 US Office of the Controller of the Currency (OCC), 495, 496 US Securities and Exchange Commission (SEC), 495, 496, 512, 513, 514, 634, 635 US Treasury, 10, 244, 256, 258–259, 392, 407, 474, 480, 491, 499 Universities Bok’s five questions about, 612–613 future of education in, 609–613 innovation in, 617, 618 master of business administration (MBA) degree in, 587–592 undergraduate education in, 673–678 See also Harvard University Universiti Sains Malaysia, 65, 649, 673 University of Michigan consumer surveys, 170, 271 Value‐added tax (VAT), 123, 183, 850 Venture capital (VC) Index crowdfunding and, 700–701 government regulation of, 701–702 in Malaysia, 687–688, 693–696 private equity versus, 692, 698–699 taxes and, 701 Vickers Commission, 437 Vietnam, 779–783 business environment in, 645, 739 China and, 826, 857 consumption in, 395, 782 economy of, 781, 783, 801 education in, 612 fiscal health of, 779, 781–782, 847 fiscal problems of, 623, 739 food demand and prices in, 548, 551 GDP changes in, 119, 251, 314, 721 global fiscal crises and, 626, 721, 847 global trade and, 87, 104, 186, 441, 737, 801, 826 growth in, 110, 128, 166, 251, 350, 362, 686, 721, 729, 737, 781–782, 860, 914 income levels in, 748 inflation in, 75, 172, 779, 782 investment in, 819, 905 labor force in, 748 manufacturing in, 278, 338 politics in, 780 productivity in, 686 revenue growth in, 914 university education in, 597 VIX Volatility Index, 74, 78, 200, 215, 257, 261, 289, 924 Vladivostok APEC Meeting (2012), 101–105, 181, 182 Vladivostok Leaders’ Declaration (APEC; 2012), 101–102 Vogel, Ezra, 365, 366 Volcker, Paul, 59, 316, 489–490, 492, 493, 495, 496, 499 Volcker Rule (VR), 345, 489–492, 495–500 Wall Street Journal, 259, 394, 499 Washington, D.C., G-20 Summit (2008), 441 Water shortages, 556 Watson, Thomas, 670, 688, 691 Weber, Axel, 50, 297 Welch, Jack, 888 Wen Jiabao, 18, 433, 841, 857 Wheatley, Martin, 505 Wheatley Review proposals, 505, 509 White, Harry Dexter, 392, 402, 442 Widodo, Joko “Jokowi,” 773, 775–776 Williamson, John, 125, 479 Wimbledon effect, 438 Wolf, Martin, 44, 49, 419, 448, 491, 492 World Bank, 24, 25, 29, 35, 36, 49, 56, 66, 67, 69, 74, 76, 90, 92, 93, 110, 111, 124, 128, 129, 163, 171, 193, 194, 195, 196, 228, 255, 269, 281, 359, 361, 388, 391, 405, 406, 409, 429, 430, 444, 480, 543, 557, 571, 572, 612, 666, 670, 686, 738, 739, 741, 742, 743, 745, 770, 775, 781, 785, 787, 788, 799, 801, 808, 812, 817, 821, 836, 844, 859, 860, 874, 876, 914, 921 World Economic Forum, 18, 761 World Economic Outlookk (IMF), 90, 127, 361, 429, 457, 922 World Gold Council (WGC), 380, 389, 397 World Trade Alliance, 444 World Trade Organization (WTO), 42, 181, 441–442, 706, 738, 749, 750, 779 Doha Development Round and, 24, 42, 43, 56, 102, 417, 441, 443, 444, 751 food supply and, 550–551 Russia and, 102 World War I, 259, 321, 406 World War II (WWII), 19, 220, 237, 240, 315, 331, 355, 379, 391, 411, 417, 442, 836 Wriston, Walter, 490 Xi Jinping, 815, 841, 842, 844– 845, 850, 856, 857, 858 Yellen, Janet, 253, 254, 263, 264 Yemen, 72 Yoshino, Naoyuki, 349, 351, 436 Zhou Enlai, 833 Zhou Xiaochuan, 51 WILEY END USER LICENSE AGREEMENT Go to www.wiley.com/go/eula to access Wiley’s ebook EULA ... gives See- Yan a rich and dramatic canvas to apply his sharp mind and deep experience Dr Lin indeed lived and lit up for us such interesting times with much gusto and in doing so brought the world... Malaysian Economic Association and former Secretary-General, Ministry of Finance, Malaysia The Global Economy in Turbulent Times LIN SEE- YAN Cover images: Illustration © LAT 2014; Stormy sky © Michal... and the Ringgit PPP in Today’s World The Big Mac Index Value of the Ringgit PPP as a Guide The Japanese Lesson What, Then, Are We to Do? Notes 423 423 424 424 425 426 426 427 CHAPTER 70 The Yuan