FOR IMMEDIATE RELEASE
Note: Pace University professor Robert Isaak is available for interviews.
“Global Finance Threatens Our Future”
New book by controversial international economic experts Wilhelm Hankel and Robert Isaak describes how “Obamanomics,” the Euro crisis, and shift of growth from the West to emerging economies can lead to economic stability and job creation
New York, NY – April 12, 2011 – Massive credit fraud in the global finance system can be regulated to “tame capitalism,” confront the sovereign debt crisis and move towards investing in the “real” economy and full employment, according to a new book by two controversial but well-respected experts on international economics and management.
In The Brave New World Economy: Global Finance Threatens Our Future (Wiley, John & Sons, Incorporated, 288pp, $29.95), Wilhelm Hankel and Robert Isaak describe how recent U.S. economic policies (“Obamanomics”), the Euro crisis, and the shift of economic growth to emerging economies, if handled properly, can lead to “true” economic stability and job creation.
Hankel is an emeritus professor of monetary policy and development at the University of Frankfurt in Germany; Isaak is a professor of international management at Pace University in New York. Media copies of the book are available through the publisher. Contact Stacy Smith at Wiley, John & Sons, Incorporated, 201-748-6569, firstname.lastname@example.org.
Skepticism about interbanking credit system, regionalization, globalization
“’Obamanomics’ and American reinvention can lead to a sustained economic recovery, but only together with major domestic, European and global monetary reforms in cooperation with the emerging nations,” the authors write. “For decades, the U.S. dollar has served as the world’s reserve currency. But after the global market meltdown and the resulting massive stimulus spending . . . . confidence in America’s ability to make good on its growing debt is at all-time lows.”
The new book:
• Calls the US’s bail-out strategy to cope with the crisis a “great bluff” and outlines reforms the authors believe President Obama must lead to bring about sustainable job recovery;
• Details how money became separated from government control and why the interbanking credit system threatens western nations with bankruptcy, undermining both pensions and the human right to work;
• Points out why nation-states need to go back to helping themselves and not rely on the “false promises” of regional integration and globalization.
“The New New World will be dominated by the sea change of economic dynamism shifting away from the West to the emerging economies, led by the exploding middle-classes in the nations known as the BRICs (Brazil, Russia, India, and China),” the authors write. “The West seems old, indebted, and politically stalemated in comparison to many emerging nations, where an increasing share of the world’s economic growth and institutional investment will end up.”
The authors say several megatrends will shape the global economy of tomorrow:
1. An increase in the number of world actors beyond the current G-7 (-8) and G-20. The increase alone implies that the dominance of the West will diminish.
2. A decline in the importance of globalization. The mercantilist strategies of “export-led growth” are apt to play a far smaller role than in the past 200 years. Adam Smith’s patriarchal wisdom, that the prosperity of nations must be prepared at home, will be taken seriously again.
3. An opportunity in technology for the West. The old structure of the world economy, in which the industrialized world pulled out its raw materials from the less-developed world and processed them, “belongs to the past,” the authors say. The emerging countries increasingly process their own raw materials and build their own industries. Under the pressure of both growing scarcity and environmental needs, more and more natural resources (particularly fossil fuels) are being replaced with synthetic substitutes. Herein, say the authors, lies the great opportunity for the old industrial countries to maintain their leadership position in the global economy — through innovation and technological advances.
About the authors:
Wilhelm Hankel is an emeritus Professor of Monetary Policy and Development at the University of Frankfurt in Germany. He served as Director of the Department of Money and Credit in the German Economic Finance Ministry, as the former president of Hessiches Landesbank in Frankfurt, and taught at Harvard, Johns Hopkins SAIS. This is his 14th book.
Robert Isaak is the Henry George Professor of International Management at Pace University in New York. He has taught at Johns Hopkins SAIS, NYU, and the Universities of Mannheim, Heidelberg, Grenoble, and Skema. This is his 11th book.
Media contact: Bill Caldwell, Pace University, 212-346-1597, email@example.com
# # #