ABSTRACT
This chapter looks at the global financial crisis in terms of its chronology, the way it describes by key commentators, and the technical details these accounts yield. Financial liberalisation then moved centre stage as the driving concept of all economic policy, both domestic and foreign. Markets were opened up, unions tamed, socialist governments marginalised and central banks made independent. LSE-based economist Wilhem Buiter pointed to the presence of excess global liquidity which gobbles up the official bank interest rate, the focus of its monetary policy mandate. Financial Times journalist Brandon Davies was very clear that banks did not believe the credit rating agencies. He also expressed the view that in August 2007 someone chose not to provide liquidity. Another LSE economist, Jon Danielson, highlighted the dangers of model dependency and of regulation that is too narrow and over complicated. Matt King credit products strategist at Citigroup, pointed to the role of the carry trade which can readily go in reverse.
