Financial Crisis


From a recent article in Oxford Analytica

“‘Shadow banking’ has expanded rapidly since the 2008-09 global financial crisis. After falling briefly in the immediate aftermath of the crisis, shadow banking assets globally rose to 71 trillion dollars by end-2012, representing half of global banking assets and 117% of global GDP…”

Full article:

Shadow Banking Risks Test Southeast Asian Leaders

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From a recent article in Oxford Analytica

“Since the first announcement in May 2013 by Federal US Reserve Chairman Ben Bernanke that the Fed might scale back or ‘taper’ its asset purchase programme if economic conditions improved, the world’s bond and stock markets plunged. According to EPFR Global, investors withdrew an estimated 25 billion dollars from emerging bond markets…”

Full Document:

Southeast Asian Property Market Carries Growing Risks

Presented by Dr.Lim Mah-Hui
On October 19, 2011
At PwC Seminar, Penang

Dr. Lim was invited to share his views regarding the U.S. and European Debt Crises at PWC, Penang. To download his powerpoint slides, please click here.

Presented by Dr Lim Mah-Hui (Michael)
On February 2-3, 2012
At South Centre Conference, Geneva
Dr. Lim was invited to give his view on the ‘State of the Global Economy, and Reflections on Recent Multilateral Negotiations’. To download his powerpoint slides, please click here.

Presented by Dr Lim Mah-Hui (Michael)
On March 27, 2012
At Taiwan Brain Trust, Taipei

Dr. Lim was invited to give a talk at the Taiwan Brain Trust in Taipei. To view his powerpoint slides, please click here.

Abstract

Despite robust growth, rising inequality is widespread in many countries. At the same time, financial instability and crises are occurring with greater frequency and severity. These two phenomena are related to the contest between labour and capital for a greater share of economic output, with capital gaining a greater share over the past few decades. As a result, there is a tendency towards a decline in consumption by the average household and a rise in savings by a rich minority which could cause stagnation in the economy.

This tension between declining consumption and rising savings is ‘resolved’ by the financial system through the recycling of funds from the rich minority to the average household in the form of credit. Financial engineering in the USA exacerbated this process which led to excessive lending and borrowing, and the creation of an unsustainable debt and asset bubble that eventually imploded. There is a similar tendency towards greater inequality, a falling share of consumption and a rising share of savings and investment in China. In the context of a globalized economy, the tension is ‘resolved’ through recycling ‘excess savings’ from China to the US, adding to the debt and asset bubble in the US.

To read the whole article, please click here.

Dr. Michael Lim recently presented at the Conference on Global Financial Turbulence in the South Centre. Below are the list of conference speakers that presented their specialised views:

  • Dr. Andrew Cornford, Associate Commentator, Observatoire de la Finance – Recent International Financial Regulation Measures : Review and Assessment
  • Mr. Joerg Mayer, Senior Economic Affairs Officer, Division of Globalization and Development Strategies, UNCTAD – Why are Commodity Prices and Markets so Volatile and what Can be Done About It
  • Mr. Duncan Campbell, Director, Policy Integration Department, International Labour Office – Designing Employment-Oriented Macro-Economic Policies for Developing Countries in the Recovery
  • Mr. Martin Khor, Executive Director, South Centre – Multilateral and Bilateral Trade and Investment Rules: Implications for Financial Regulation and Policy, and Proposals for Reform
  • Dr. Yilmaz Akyuz, Chief Economist, South Centre; former Director, Division for Globalization and Development Studies, UNCTAD
  • Dr. Yaga Venugopal Reddy, Emeritus Professor, University of Hyderabad; former Governor, Reserve Bank of India
  • Dr. Charles Soludo, former Governor, Central Bank of Nigeria
  • Dr. Manuel Montes, Chief, Development Strategy and Policy Analysis, UN Department of Economic and Social Affairs (UNDESA)
  • Dr. Jorge Marchini, Professor of Economics, University of Buenos Aires

Below is the powerpoint presentation of Dr. Lim for your viewing pleasure.
The Global Financial/Economic Crisis and How to Address It – An Asian View

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