The World Economy and Financial System: A Paradigm Change Offering a Sustainable Approach

Description

This book introduces a new economic and financial system to replace the flawed current system. The past financial crises, including the Great Depression, the Global Financial Crisis, the COVID-19 pandemic, and the ongoing war between Russia and Ukraine, have showed us that the global financial system has problems and that a paradigm change and mindset shift to provide a better world to society is essential. This book brings a new sustainable approach to replace the current system and will be of interest to academics, policymakers, and professionals working with financial markets, financial economics, sustainability, and impact finance. Foreword Preface Acknowledgments Contents About the Author List of Figures List of Tables 1 Introduction References 2 A Brief History of Economic and Global Financial Systems Brief History of Economic Systems History of the Global Financial System References 3 Financial Crises: From 1929 Great Depression to 2020 Great Lockdown 1929 Great Depression The Oil Crisis 1973 and 1979 1980 Latin American Debt Crisis 1987 Black Monday The US Savings and Loans Crisis (1989–1991) 1992 Collapse of Japanese Asset Price Bubble 1994 Mexican Peso Crisis 1997 Asian Financial Crisis 1998 Russian Ruble Crisis 2000 Dot-Com Bubble 2001 September 11 Attacks 2008 Global Financial Crisis European Debt Crisis 2020 COVID-19 Recession (Great Lockdown) References 4 The Global Risks and Problems of the Economic and Financial Systems Global Debt Post-COVID-19 Debate: Inflation vs. Unemployment/Recession (From Keynesian Policies to Friedman Approach) Inequality in Wealth Distribution Re-Globalization Under the Shadow of Brexit, Trade Wars, COVID-19, and Geopolitical Conflicts The Effects of Brexit Trade Wars The Effects of COVID-19 Geopolitical Conflicts References 5 A Short Anatomy of the Turkish Economy and the Signs of a New Crisis Turkish Economy: From 1923 to 2023 Are There Signs of a New Crisis? References 6 Time to Question What Are the Main Needs of People? Housing Education and Health Peace Freedom and Rule of Law Why Do People Work? What is Money for? What Makes People Happy? How the Conflicts Among Individuals and Societies Can Be Avoided? References 7 The New Sustainable Approach Does Economic Growth Really Matter? What Are the Alternatives? Circular Economy Sharing Economy Digital Economy Islamic Economics and Finance The New Approach Main Pillars: Developing, Balancing, Saving, and Sharing Pillar 1: Developing Pillar 2: Balancing Diderot Effect Pillar 3: Saving Pillar 4: Sharing The Model Framework of the New System From Debt-Oriented Deadlock to Partnership-Tailored Solution Approach The Model Framework What Are the Sources of Money for the New System? Sovereign Wealth Funds Pension Funds Insurance Mutual Funds Hedge Funds Venture Capital Investment Funds Real Estate Investment Funds How Can the Model Be Implemented? An Alternative Housing Financing Model An Alternative Approach to Replace Debt Financing An Alternative Project Financing Model: Public-Private-People Partnership (4P Model) Redesigning the Pension and Insurance Systems A New Tax System References 8 What Is Next? References Index