A VERY NORTH ATLANTIC CREDIT CRUNCH: GEOPOLITICAL IMPLICATIONS OF THE GLOBAL LIQUIDITY CRISIS by ProQuest

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This paper explores some of the geopolitical implications of the continuing global credit crunch. In its methods and subject matter, geopolitics is a field alien to financial economics. While financial economics seeks to derive a theory of market and economic trends from past experiences, geopolitics is speculative, intuitive and aimed at anticipating the future. In the world of economic theory, change occurs through innovation and competition. In a geopolitical analysis, markets are institutions operating in a political and regulatory environment which may or may not allow them to innovate. The trends discussed in this paper are relative, rather than absolute. If the author's observations are correct, then one likely impact of the current developments stands out: The relative rise of the euro in importance, combined with a likely outcome of stricter regulatory regime in Europe, brings people to a somewhat unexpected conclusion.

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