The theory of capital market inflation argues that the values of long-term securities markets are determined by a disequilibrium inflow of funds into those markets. The resulting over-capitalization of companies leads to increased fragility of banking and undermines monetary policy and stable...

Barry Eichengreen, Ricardo Hausmann and Ugo Panizza (2007), 'Currency Mismatches, Debt Intolerance, and Original Sin: Why They are Not the Same and Why it Matters', in Sebastian Edwards (ed) (ed.), Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences,...

Front Matter -- Half Title -- Advance Praise -- Title -- Copyright -- Contents -- Introduction -- 1 Why the World Economy Needs a Financial Crash -- PART I The Economics of Financial Inflation -- 2 Money in Globalised Times -- The Evolution of Money -- Bretton Woods -- Free Markets and...