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Social Finance

Shadow Banking During the Global Financial Crisis

Authors: Shenai, Neil

  • Advances a new theory of financial crises based on a synthesis of interdisciplinary insights from Post-Keynesianism, Keynesian epistemology, international relations theory, and economic constructivism
  • Conducts a systematic empirical examination via an in-depth case study of shadow banking during the global financial crisis, explaining the mechanics of market-based financial intermediation
  • Offers new data based on the results of interviews with hedge fund managers, market-makers, portfolio managers, private equity investors, and regulators who oversaw $2 trillion in notional order flows and managed over $200 billion in assets during the crisis
  • Provides a viable heuristic device for forecasting financial instability with concrete guidance on the policy implications for fighting future financial crises
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eBook £71.50
price for United Kingdom (gross)
  • ISBN 978-3-319-91346-9
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover £89.99
price for United Kingdom (gross)
  • ISBN 978-3-319-91345-2
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

This book presents a new, inter-disciplinary framework of financial instability that builds on the Post-Keynesian model of financial crises in the tradition of Hyman Minsky and Charles Kindleberger.  It reincorporates John Maynard Keynes’ insights on economic conventions to explain how market participants construct stable (but fragile) markets and why financial crises tend to take us by surprise.  It borrows from scholarship on crises in international relations theory to examine how defied expectations can trigger panics in fragile financial systems.  And it draws on perspectives from international political economy to show how elites’ foundational economic beliefs drive their responses to crises and how the effectiveness of their interventions depends on their credibility with the marketplace.  The results of interviews with some of the world’s leading investors in Los Angeles, London, New York, and Toronto illustrate the utility of this new paradigm via a case study of shadow banking during the global financial crisis.  A close examination of primary and secondary sources and quantitative evidence complement these first-hand accounts.  All told, this book’s model offers a viable heuristic device for thinking about financial instability, which will be relevant to academics, policy makers, portfolio managers, and students.  

About the authors

Neil Shenai was a Professorial Lecturer at American University’s School of International Service in Washington, DC from 2013-15. He received his PhD from Johns Hopkins University School of Advanced International Studies, where he served as an Adjunct Lecturer of International Economics from 2011-16.  He is currently a Term Member of the Council on Foreign Relations.  

Reviews

“Social Finance is an indispensable handbook for policymakers and academics interested in financial stability. Neil Shenai supports his new theory with evidence from the global financial crisis while providing a roadmap for thinking about risks in the global economy’s increasingly important shadow banking system.” (Panicos Demetriades, Professor of Economics at the University of Leicester; former Governor of the Central Bank of Cyprus and member of the Governing Council of the European Central Bank, UK)

“Neil Shenai’s rare combination of expertise in economics, financial markets, and policymaking underpins the insightful and relevant scholarship of Social Finance. This book’s important contributions to the understanding of financial instability and the proper policy responses thereto are all the more timely given that now, roughly a decade after the global financial crisis, we must consider the prospect of the next downturn in the global credit and economic cycle in the coming years.” (John Fagan, President and Co-Founder, Markets Policy Partners, Inc. USA )

“Scholarly policy analysis is often hostage to elegant new models that explain a world that does not exist because it is professionally safe, even advantageous, to do so. Neil Shenai breaks that mold with this book, a scholarly exploration robustly grounded in the enduring relevance of John Maynard Keynes and Hyman Minsky. Bravo!” (Paul McCulley, Senior Fellow in Financial Macroeconomics, Cornell Law School; former Chief Economist and Managing Director, Pacific Investment Management Company, USA)

“As memories of the crisis fade, Neil Shenai has developed a theory of financial instability that is urgently needed. In this must-read book, Shenai offers concrete lessons about shadow banking during the crisis with ample evidence and in clear prose. Policymakers and market practitioners should read Social Finance to imagine and prepare for future instability – its drivers, triggers, and potential remedies.” (Daleep Singh, Chief U.S.  Economist, SPX International; former Acting Assistant U.S. Treasury Secretary)

 


Table of contents (7 chapters)

Buy this book

eBook £71.50
price for United Kingdom (gross)
  • ISBN 978-3-319-91346-9
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover £89.99
price for United Kingdom (gross)
  • ISBN 978-3-319-91345-2
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Social Finance
Book Subtitle
Shadow Banking During the Global Financial Crisis
Authors
Copyright
2018
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s)
eBook ISBN
978-3-319-91346-9
DOI
10.1007/978-3-319-91346-9
Hardcover ISBN
978-3-319-91345-2
Edition Number
1
Number of Pages
XVII, 231
Number of Illustrations
27 b/w illustrations
Topics