The Dark Side of NY-LON: Financial Centres and the Global Financial Crisis

University of Oxford Employment, Work and Finance Working Paper No. 11-12

16 Pages Posted: 21 Jul 2011

See all articles by Dariusz Wojcik

Dariusz Wojcik

University of Oxford, St. Peter's College

Date Written: July 20, 2011

Abstract

This paper brings financial centres into the debate on the causes and consequences of the global financial crisis, by focusing on New York and London. It argues that the degree of commonality, complementarity and connectivity between the two leading global financial centres justifies the use of the term ‘the New York – London axis’ (the axis). It shows that the global financial crisis 2007-9 originated to large extent in the axis rather than in an abstract space of financial markets. The dominance of the axis in global finance can be easily underestimated, and evidence suggests that contrary to expectations the axis is not in decline. Implications are drawn for the future of Asian financial centres and the global financial reform. If global finance is to change, the New York – London axis has to change. Debate on the reform has to take the reality of global financial centres seriously.

Keywords: New York, London, Asia, financial centres, financial crisis, financial reform

JEL Classification: F30, O18, R10, R51

Suggested Citation

Wojcik, Dariusz, The Dark Side of NY-LON: Financial Centres and the Global Financial Crisis (July 20, 2011). University of Oxford Employment, Work and Finance Working Paper No. 11-12. Available at SSRN: https://ssrn.com/abstract=1890644 or http://dx.doi.org/10.2139/ssrn.1890644

Dariusz Wojcik (Contact Author)

University of Oxford, St. Peter's College ( email )

New Inn Hall Street
Oxford, OX1 2DL
United Kingdom

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