http://www.ft.com/intl/cms/s/0/fe45eeb2-d644-11df-81f0-00144feabdc0.html.
14. Janet Yellen, “Monetary Policy and the Economic Recovery,” speech to the Economic Club of New York, Board of Governors of the Federal Reserve System, April 16, 2014, http://www.federalreserve.gov/newsevents/speech/yellen20140416a.htm.
15. Mohamed A. El-Erian, “Trial by Fire: What Crises Lie in Wait for Janet Yellen,” Foreign Policy, January 7, 2014, http://foreignpolicy.com/2014/01/07/trial-by-fire/.
16. Raghuram Rajan, “Global Policy: A View from Emerging Markets,” Brookings Institution, video, April 10, 2014, http://www.brookings.edu/events/2014/04/10-global-monetary-policy-view-from-emerging-markets.
17. See, for example, “The BIS Quarterly Review for December 2014: Buoyant Yet Fragile?,” December 7, 2014, Bank for International Settlements, http://www.bis.org/publ/qtrpdf/r_qt1412.htm.
18. Michael Chui, Ingo Fender, and Vladyslav Sushko, “Risks Related to EME Corporate Balance Sheets: The Role of Leverage and Currency Mismatch,” Bank for International Settlements, 2014, http://www.bis.org/publ/qtrpdf/r_qt1409f.pdf.
CHAPTER 10: REDUCING THE RISK OF THE UNEMPLOYED BECOMING UNEMPLOYABLE
1. Stanley Fischer, “The Great Recession: Moving Ahead,” speech to conference sponsored by the Swedish Ministry of Finance, Board of Governors of the Federal Reserve, August 11, 2014, http://www.federalreserve.gov/news events/speech/fischer20140811a.htm.
CHAPTER 11: THE INEQUALITY TRIFECTA
1. “Focus on Inequality and Income,” Organisation for Economic Co-operation and Development, Directorate for Employment, Labor and Social Affairs, December 2014, http://www.oecd.org/social/Focus-Inequality-and-Growth-2014.pdf.
2. Emmanuel Saez and Gabriel Zucman, “Wealth Inequality in the US Since 1913,” NBER Working Paper No. 20615, October 2014.
3. Estelle Sommiller and Mark Price, “The Increasingly Unequal Income States of America,” Economic Policy Institute, January 26, 2015, http://www.epi.org/publication/income-inequality-by-state-1917-to-2012/.
4. “17 Things We Learned About Income Inequality in 2014,” Atlantic, December 23, 2014, http://www.theatlantic.com/business/archive/2014/12/17-things-we-learned-about-income-inequality-in-2014/383917/.
5. Federal Reserve Board of Governors, “Changes in US Family Finances from 2010 to 2013: Evidence from the Survey of Consumer Finances,” Federal Reserve Bulletin 100, no. 4 (September 2014), http://www.federalreserve.gov/pubs/bulletin/2014/pdf/scf14.pdf.
6. Rakesh Kochhar and Richard Fry, “Wealth Inequality Has Widened Along Racial, Ethnic Lines Since the End of the Great Recession,” Pew Research Center, December 12, 2014, http://www.pewresearch.org/fact-tank/2014/12/12/racial-wealth-gaps-great-recession/.
7. Thomas Piketty, Capital in the Twenty-First Century (Cambridge, MA: Belknap Press of Harvard University Press, 2014).
8. Mohamed A. El-Erian, “The Inequality Trifecta,” Project Syndicate, October 17, 2014, http://www.project-syndicate.org/commentary/imf-world-bank-annual-meetings-and-inequality-by-mohamed-a--el-erian-2014-10.
9. Madeline Ostrander, “What Poverty Does to the Young Brain,” New Yorker, June 4, 2015, http://www.newyorker.com/tech/elements/what-poverty-does-to-the-young-brain.
10. Frank Bruni, “Class, Cost and College,” New York Times, May 17, 2014, http://www.nytimes.com/2014/05/18/opinion/sunday/bruni-class-cost-and-college.html.
11. McKinsey Global Institute, “QE and Ultra-Low Rates,” 2013.
CHAPTER 12: THE PERSISTENT TRUST DEFICIT
1. Ian Fraser, Shredded: Inside RBS, the Bank That Broke Britain (Edinburgh: Birlinn, 2014).
2. Joshua Zumbrun and Alaa Shahine, “Retired Bernanke Harbors Regret on Main Street’s View of Bailout,” Bloomberg News, March 4, 2014, http://www.bloomberg.com/news/2014-03-04/bernanke-says-u-s-economy-seeing-progress.html.
3. Timothy F. Geithner, Stress Test: Reflections on Financial Crises (New York: Crown, 2014).
4. Binyamin Appelbaum, “Yellen Says Restraining the Fed’s Oversight Would Be a ‘Grave Mistake,’ ” New York Times, July 16, 2014, http://www.nytimes.com/2014/07/17/business/yellen-says-constraining-fed-would-be-a-grave-mistake.html.
5. Panel discussion remarks quoted in Jeff Kearns, “Fed’s $4 Trillion Assets Draw Lawmaker Ire Amid Bubble Concerns,” Bloomberg News, December 17, 2013, http://www.bloomberg.com/news/2013-12-17/fed-s-4-trillion-assets-draw-lawmaker-ire-amid-bubble-concern.html.
6. Ibid.
7. Peter Eavis, “New York Fed Is Criticized on Oversight,” November 21, 2014, http://dealbook.nytimes.com/2014/11/21/new-york-fed-chief-faces-withering-criticism-at-senate-hearing.
8. Liz Alderman, “Netherlands Asks Bankers to Swear to God,” New York Times, December 12, 2014, http://dealbook.nytimes.com/2014/12/12/netherlands-asks-bankers-to-swear-to-god.
9. Mohamed A. El-Erian, “The Threat to the Central Bank Brand,” Project Syndicate, June 4, 2013, http://www.project-syndicate.org/commentary/the-growing-risk-to-central-bankers--credibility-by-mohamed-a--el-erian.
10. Guy Kawasaki, Enchantment: The Art of Changing Hearts, Minds, and Actions (New York: Penguin Books, 2012).
CHAPTER 13: NATIONAL POLITICAL DYSFUNCTION
1. “The Great Fracturing,” Economist, February 21, 2015, http://www.econo mist.com/news/leaders/21644147-britains-slide-six-party-politics-presages-instability-and-crisis-legitimacy-great.
2. Mohamed A. El-Erian, “I Don’t Know What Will Happen If We Default, and I Don’t Want to Find Out,” Atlantic, October 10, 2013, http://www.theatlantic.com/business/archive/2013/10/i-dont-know-what-will-happen-if-we-default-and-i-dont-want-to-find-out/280467/.
3. For an insightful discussion of the various components of this balancing act, see Eric Schmidt and Jared Cohen, The New Digital Age: Reshaping the Future of People, Nations and Business (London: John Murray, 2014).
4. Mohamed A. El-Erian, “The Very Messy Politics of Economic Divergence,” Project Syndicate, March 2015, http://www.project-syndicate.org/com mentary/economic-divergence-global-politics-by-mohamed-a--el-erian-2015-03.
CHAPTER 14: THE “G-0” SLIDE INTO THE “INTERNATIONAL ECONOMIC NON-SYSTEM”
1. The term was coined more than ten years ago by Jim O’Neil, Goldman Sachs’s chief economist at that time. It now refers to the grouping of countries consisting of Brazil, Russia, India, China, and South Africa.
2. Mohamed A. El-Erian, “The Real Message of the BRICS Summit,” Bloomberg View, July 17, 2014, http://www.bloombergview.com/articles/2014-07-17/the-real-message-of-the-brics-summit.
3. Mohamed A. El-Erian, “U.S. Opposition to Asian Bank Is Self-Destructive,” Bloomberg View, March 31, 2015, http://www.bloombergview.com/articles/2015-03-31/el-erian-u-s-opposition-to-asia-bank-is-self-destructive.
4. Richard Dobbs, James Manyika, and Jonathan Woetzel, No Ordinary Disruption: The Four Global Forces Breaking All the Trends (New York: PublicAffairs, 2015).
5. Mohamed A. El-Erian, “Is the World Bank Losing Asia?,” Bloomberg View, July 10, 2014, http://www.bloombergview.com/articles/2014-07-10/is-the-world-bank-losing-asia.
CHAPTER 15: THE MIGRATION AND MORPHING OF FINANCIAL RISKS
1. See, for example, the December 9 press release by the Board of Governors of the Federal Reserve System, http://www.federalreserve.gov/newsevents/press/bcreg/20141209a.htm.
2. Greg Ip, “Post-Crisis Risk Casts a Darkening Shadow,” Wall Street Journal, April 8, 2015, http://www.wsj.com/articles/post-crisis-risk-casts-a-darkening-shadow-1428499827.
3. Brad Jones, “Asset Bubbles: Rethinking Policy for the Age of Asset Management,” IMF Working Paper, February 2015, http://www.imf.org/external/pubs/ft/wp/2015/wp1527.pdf.
4. Jaime Caruana, “Macro-Prudential Policies: Opportunities and Challenges,” speech to the Tenth High-Level Meeting for the Middle East and North Africa, Bank for International Settlements, December 9, 2014, http://www.bis.org/speeches/sp141219.pdf.
5. Banque de France, “Macroprudential Policies: Implementation and Interactions,” Financial Stability Review, April 2014.
6. Mohamed A. El-Erian, “3 Steps to Remove Financial System Risk,” Harvard Business School, August 15, 2007, http://hbswk.hbs.edu/item/5745.html.
7. Mohamed A. El-Erian, “Creative Self-Disruption,” Project Syndicate, April 7, 2015, https://www.project-syndicate.org/commentary/consumer-sharing-economy-adaptation-by-mohamed-a--el-erian-2015-04.
8. Steve Lohr, “Banking Start-ups Adopt New Tools for Lending,” New York Times, January 19, 2015, http://www.nytimes.com/2015/01/19/technology/banking-start-ups-adopt-new-tools-for-lending.html.
9. For full disclosure, I have been recently involved in one of these efforts—“Payoff”—as an investor and board member of a start-up seeking to improve the financial services offered to households and small businesses.
CHAPTER 16: THE LIQUIDITY DELUSION
1. Tracy Alloway and Michael MacKenzie, “Anatomy of a Market Meltdown,” Financial Times, November 18, 2014, http://www.ft.com/cms/s/0/cac64efe-6b34-11e4-ae52-00144feabdc0.html.
2. Jamie Dimon, “Annual Letter to Shareholders,” JPMorgan Chase, April 2015, http://files.shareholder.com/downloads/ONE/15660259x0x820077/8af78e45-1d81-4363-931c-439d04312ebc/JPMC-AR2014-LetterToShare holders.pdf.
3. William Finkbarr Flynn and Takako Taniguchi, “Prudential Chief Echoes Dimon Saying Liquidity Is Top Worry,” Bloomberg News, April 13, 2015, http://www.bloomberg.com/news/articles/2015-04-14/prudential-chief-says-biggest-worry-is-liquidity-echoing-dimon.
4. Mohamed A. El-Erian, “The Market ‘Sucking Sounds’ Are Getting Louder as Four Forces Come Together,” Business Insider, June 11, 2013,