Written by Lex Hoogduin and Jesper Nederhoed, "Lost Anchors and the Great Financial Expansion" is a narrative about the 2008 global crisis. To many, this disaster was like a bolt out of the blue. But actually, this crisis has very long roots, starting with the demise of the Bretton Woods system in the 1970's. When the international monetary system lost its anchor, the road was paved for the Great Financial Expansion.
The financial sector grew to immense size as compared to GDP. And it is not just common sense that this party, fueled by low interest rates, had to come to a halt. In fact, there is a school of thought in economic science that predicted precisely this outcome. Read all about in the narrative: "Lost Anchors and the Great Financial Expansion - The story of the 2008 global crisis". Here is the link: https://glocomnet.com/library/lost-anchors-and-the...