So Did Chinese Tightening Really Cause the 2008 Global Financial Crisis?

by Michael J. Howell21. February 2018 11:49

Most analysts would agree that US shadow banking, and its associated leverage and inadequate regulation, lay at the heart of the World’s financial problems in 2008 and that distress in the sub-prime mortgage market ultimately triggered the Crash. But we suggest here that there may be another explanation that closely involves China? This is not in any way to suggest that China caused the GFC. Rather it says that we always need to take a broad, global view and to understand the effects of cross-border capital flows on markets.

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