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Stephen D. King - Losing Control: The Emerging Threats to Western Prosperity

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Stephen D. King Losing Control: The Emerging Threats to Western Prosperity
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Losing Control: The Emerging Threats to Western Prosperity: summary, description and annotation

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As the economic giants of Asia and elsewhere have awakened, Western leaders have increasingly struggled to maintain economic stability. The international financial crisis that began in 2007 is but one result of the emerging nations increased gravitational pull. In this vividly written and compellingly argued book, Stephen D. King, the global chief economist at HSBC, one of the largest banking groups in the world, suggests that the decades ahead will see a major redistribution of wealth and power across the globe that will force consumers in the United States and Europe to stop living beyond their means.

The tide of money washing in from emerging nations has already fuelled the recent property bubble in the West, while new patterns of trade have left the West increasingly dependent on risky financial services. Unless things change drastically, King argues, the increasing power of emerging markets, when coupled with poor internal regulation and an increasingly anachronistic system of global governance, will result in greater instability and income inequality, accompanied by the risk of a major dollar decline. And as Western populations age and emerging economies develop further, the social and political consequences may be alarming to citizens who have grown accustomed to living in prosperity.

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LOSING CONTROL LOSING CONTROL THE EMERGING THREATS TO - photo 1

LOSING CONTROL

LOSING
CONTROL

THE EMERGING THREATS TO
WESTERN PROSPERITY

STEPHEN D. KING

YALE UNIVERSITY PRESS
NEW HAVEN AND LONDON

Copyright 2010 Stephen D. King

The right of Stephen D. King to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. This book may not be reproduced in whole or in part, in any form (beyond that copying permitted by Sections 107 and 108 of the U.S. Copyright Law and except by reviewers for the public press) without written permission from the publishers.

For information about this and other Yale University Press publications, please contact:

U.S. Office: sales.press@yale.edu yalepress.yale.edu

Europe Office: sales@yaleup.co.uk www.yalebooks.co.uk

Set in Minion by IDSUK (DataConnection) Ltd

Printed in Great Britain by Hobbs the Printers Ltd, Totton, Hampshire

Library of Congress Cataloging-in-Publication Data

King, Stephen D., 1963

Losing control : the emerging threats to western prosperity / Stephen D. King.

p. cm.

ISBN 978-0-300-15432-0 (cl : alk. paper) 1. Western countriesEconomic conditions21st century. Western countriesEconomic policy. Developing countriesEconomic policy. I.

Title.

HC59.3.K56 2010

330.9dc22 2009052119

A catalogue record for this book is available from the British Library.

10 9 8 7 6 5 4 3 2 1

2014 2013 2012 2011 2010

CONTENTS

To Yvonne, Helena, Olivia and Sophie

ACKNOWLEDGEMENTS

I may have spent many days (and nights) umbilically attached to my keyboard in a quest to complete this book but I can hardly claim to have done so without the support of others who have, throughout the project, offered encouragement, advice and numerous helpful suggestions.

I would like to thank those friends and colleagues who have provided comments on the manuscript, whether in its early stages or as it approached completion. Of particular help were Richard Cookson, Ian Morris, David Bloom (all, at the time, at HSBC) and Peter Oppenheimer (at Goldman Sachs). I am also very grateful to the two anonymous academic referees who provided sage advice to a book-writing novice.

When I delivered speeches on the global economy at the Universities of Oxford and Warwick, both teachers and students encouraged me to think about some of the ideas that now find their way into the book, notably those associated with the history of globalization.

Professor Tim Besley from the London School of Economics offered useful advice on Part 1. The chapter on state capitalism benefited from a lengthy conversation with Professor Dieter Helm from New College, Oxford. The sections on monetary policy were helped by discussions over the years with policymakers, notably from the Bank of England, HM Treasury, the Federal Reserve and the European Central Bank.

My economic horizons have been expanded as a result of regular attendance at events where I have had the chance to converse with fellow economists. Of particular value have been regular meetings at the Bank for International Settlements in Basel, the Oesterreichische Kontrollbank AG (OeKB) in Vienna and the Accumulation Society in London. I have also benefited from my occasional involvement with the Business Council for Britain.

Those who offered encouragement when the book was merely a vague concept include Diane Coyle, Hamish McRae and Martin Wolf. All three know a lot more than I do about writing books and all were kind enough to steer me in the right direction.

I am enormously grateful to the people at Yale University Press. Special thanks go to Phoebe Clapham, my editor, who was dogged in her determination to turn my scribblings into a coherent final manuscript. I also offer my gratitude to Sarah Harrison and Liz Pelton, who have provided so much support on publicity. Heather Nathan has been a source of tremendous encouragement throughout with her infectious enthusiasm, which was instrumental in persuading me to pursue the project from day one.

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