G-8 -> Added Russia
G-7 -> States: us Germany France Canada Japan UK and Italy
g-7, g-8 -> Coordination of Exchange rates
Asian crisis -. 1997 - 1998 : Asian economies (Indonesia, Malaysia, Thailand)
These Asian economics were running out of the reserves of us currency and other ficm -:. major
exchange rate crisis
Severe revolution of these economies exchange rates against he us dollar and other currencies
Currencies that would allow outside investors to get their money out.
|-> destabilization of the global financial system.
Responsibility of G-7 group : Develop "bailout" packages for countries which are experiencing financial
|-> Works with IMF to developed this package.
How bailout package worked?
IMF went to economies and said "must get economies house in order -> privatize, reduce
economic spending etc."
G20 -> New group
-> Much wider body - grown to include various countries such as China, Brazil, Russia, India,
(these are brick countries - experiencing higher growth rate with shifts of production from global north
to global south).
- this is compared to the G7 countries with ongoing offshore of production.
THE US - for 30 yrs now, US has been debtor nation.
- China has large reserves of US currencies.
|-> larger balance of payments surplus, based on strategy of growing manufactured
exports to the US.
Large currencies reserves - key dimension of globalization project is how to maintain a balance
in global financial markets.
TNBS - increasingly based on transnational flows of loans and repayments across the world
|-> loaning money to various countries.