ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Ht Parekh Finance ColumnSubscribe to Ht Parekh Finance Column

Dangers of Unbounded Capitalism

One of the best books on the global financial crisis, Crashed by Adam Tooze slays the idea that the policy response was about the technical ability of brave officials and not bare political choices. This point, augmented with stories of deep financial integration between China, Europe and the United States, is a devastatingly insightful description but not a prescription. Although Tooze says that the story is a perennial one of instability of capitalism, he neglects history and the relatively successful way the world responded in Bretton Woods, when unstable capitalism last engulfed us in crisis.

Beyond the Rhetoric on Climate Change

In the climate change debate, a number of industrialised governments and multilateral development organisations push for greater use of risk finance products and financial innovation in general. But, insurance is no solution to climate change because it is no solution to risks that are rising in time and correlation. It is merely a way of getting the victims of climate change to pay for it themselves and not the contributors.
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