This book covers many aspects of excessive expansion of cross-border
capital flows underlying the global financial crises that occurred in
succession in the form of the subprime mortgage crisis, the collapse of
Lehman Brothers, and the European debt crisis. Obtaining a broader
picture of financial flows at the global level from various perspectives
is essential to comprehensively understand the fundamental causes for a
series of global-scale financial crises and to formulate effective
policy responses in the future. The topics addressed here include a
basic concept and overview of global liquidity in a broad sense,
domestic and international credit activities of financial institutions
in both advanced and emerging countries, and global demand for US
dollars. Offshore bond issuance in BRICs countries, including its
implications for the Chinese shadow banking sector, uncovered interest
rate parity puzzle, and related policies such as capital controls are
covered as well. This book is highly recommended to readers who seek an
in-depth and up-to-date integrated overview of the dynamics of today's
globalized financial markets.