The Subprime Crisis: Canary in a Coal Mine?


Will the current subprime lending crisis spiral into a wider credit crunch?

What impact will it have on world financial markets and a world economic system that is increasingly integrated and highly dependent on the health of the U.S. economy?

What is the appropriate monetary policy and will the crisis serve as a wake up call to central banks around the world?


Stephen S. Roach is Managing Director and Chief Economist of Morgan Stanley, a leading global financial services firm. In this role, he oversees the Firm's team of economists located in New York, London, Frankfurt, Paris, Tokyo, Hong Kong and Singapore.

Before joining Morgan Stanley in 1982, Mr. Roach was Vice President for Economic Analysis for the Morgan Guaranty Trust Company in New York.

He also served on the research staff of the Federal Reserve Board in Washington, D.C. from 1972-79 - where he supervised the preparation of the official Federal Reserve projections of the U.S. economy. Prior to that, he was a research fellow at the Brookings Institution in Washington, D.C.