The U.S sub-prime crisis and its subsequent global financial crisis has attracted great attention from the Chinese scholars. One of the most notable books is Da weiji da biange: zhongguo xuezhe kan jinrong fengbao xia de shijie jingji (Great Crisis and great transformation: how the Chinese scholars look at the world economy under the financial storm), edited by Zhang Deguang and published by the World Affairs Press in December 2009.
Authors of the book come from the Chinese Academy of Social Sciences, China Institute of International Studies, and other academic organizations.
Chinese scholars have different views regarding the causes of the global financial crisis. According to one author, there are three major reasons that can explain why the U.S. subprime crisis happened at last. First, the loose monetary policy pursued by the U.S. Federal Reserve led to an over-expansion of the housing market. Second, rapid development of the financial derivatives was not accompanied by strict and proper regulation and supervision. Finally, imbalance of international payments created an over-supply of liquidity on the world financial market.
Wang He, professor from IES, gives an overview of the impact of the crisis on Europe’s economy and social development. He also analyzes Europe’s anti-crisis measures and their effect. He believes that, despite the crisis, the fundamental principle of Europe’s social market economy has not been changed. He also points out that the Lisbon Treaty, whose approval was facilitated by the efforts to deal with the global financial crisis, will push forward European integration one great step further.
Jiang Shixue, professor of IES, offers an analysis of the impact of the global financial crisis on the developing countries and the effect of their anti-crisis measures.
Chinese Scholars on the Global Financial Crisis