Carlos Sidnei Coutinho

Financial Revolution Carlos Sidnei Coutinho

FINANCIAL GLOBALIZATION is the story of the great finance focused on global expansion of derivatives markets (estimated at $ 600 trillion - ten times global GDP). It is the story of dollarized finance that connected all of the financial markets of major economies constituting a single capitalist financial system with global reach. The finance of capitalism that has on Wall Street the hard core, the eye of the financial hurricane (2008). FINANCIAL REVOLUTION is a study of the origin and development of high complexity finance: a network of financial intermediaries and institutional investors in control of speculative financial relationships of high complexity, connected online markets around the world, and high risk systemic and volatility. Since the mid-eighties, it has seen the dominance of the financial transactions characterized by large secondary markets that guarantee high degree of negotiating the various types of financial instruments, liquidity, mobility and volatility resulting from changes in expectations about the prices of various assets denominated in different currencies. This volatility eventually drives an unprecedented growth of the hedging instruments, derivatives, seeking to mitigate the income loss risk and devaluation of assets. FINANCIAL REVOLUTION develops a line of analysis of financial worldwide expansion and structural instability due to the long-term growth pattern of exhaustion in capitalist economies in the Post-WarII. The study highlights the following issues: Dollar, Finance Supremacy and the great financial transformation. Dollar: the great institutional changes of the Post-War II. The relative stability of financial structures and macroeconomic growth trajectories. The change in the role of multilateral institutions, case of the Bretton Woods worldwide order (The international monetary system crisis). The dollar supremacy recovery policy and its consequences. The shock of interest and stabilizing interventions in the dollar agreements Plaza-Louvre. Deep Finance: the rising of FINANCIAL REVOLUTION. At the international level, there is the growing importance of financial transactions in relation to commercial transactions. The role of financial markets in determining the exchange rate for the implementation of stabilization policies of "Big Government" and "Big Bank" (lender of last resort). US Supercapitalism crisis and financial hurricanes. First major financial systemic crisis of the century, central theme of FINANCIAL REVOLUTION. The crisis of 2008 was the last episode of the FINANCIAL REVOLUTION.