Kathryn C. Lavelle
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199765348
- eISBN:
- 9780199918959
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199765348.003.0007
- Subject:
- Political Science, International Relations and Politics
In this chapter, the IMF, World Bank, and Congress entered the revived stage of the relationship among them. The revival was triggered externally by the international dimensions of the 2008 financial ...
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In this chapter, the IMF, World Bank, and Congress entered the revived stage of the relationship among them. The revival was triggered externally by the international dimensions of the 2008 financial crisis. Internal change in the legislature came from the election of democratic President Barack Obama, ending the earlier period of divided government. The chapter argues that through congressional advocacy efforts, the IMF received an increase in its New Arrangements to Borrow, following an informal agreement to modify some conditionality and transparency practices. The World Bank achieved the authorization and appropriation for the fifteenth replenishment of the International Development Association, with provisions over the use of the labor indicator in the Doing Business report. The role of the IMF in the Eurozone bailouts associated with the Greek and Irish crises is not conclusive in 2011. However, the era of divided government that facilitated a certain degree of support for the Bretton Woods institutions ended with the close of the 111th Congress. The length and character of the revival faces the obstacle of the collapse of the traditional constituencies of support for the IMF and World Bank in the international banking communities in the long term.Less
In this chapter, the IMF, World Bank, and Congress entered the revived stage of the relationship among them. The revival was triggered externally by the international dimensions of the 2008 financial crisis. Internal change in the legislature came from the election of democratic President Barack Obama, ending the earlier period of divided government. The chapter argues that through congressional advocacy efforts, the IMF received an increase in its New Arrangements to Borrow, following an informal agreement to modify some conditionality and transparency practices. The World Bank achieved the authorization and appropriation for the fifteenth replenishment of the International Development Association, with provisions over the use of the labor indicator in the Doing Business report. The role of the IMF in the Eurozone bailouts associated with the Greek and Irish crises is not conclusive in 2011. However, the era of divided government that facilitated a certain degree of support for the Bretton Woods institutions ended with the close of the 111th Congress. The length and character of the revival faces the obstacle of the collapse of the traditional constituencies of support for the IMF and World Bank in the international banking communities in the long term.
Ida Susser
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780195367317
- eISBN:
- 9780199951192
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195367317.003.0000
- Subject:
- Sociology, Social Stratification, Inequality, and Mobility, Urban and Rural Studies
This chapter opens with a brief discussion of the production of urban space and the historical contributions of Robert Moses and Jane Jacobs to the structuring of New York City. The section that ...
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This chapter opens with a brief discussion of the production of urban space and the historical contributions of Robert Moses and Jane Jacobs to the structuring of New York City. The section that follows outlines the impact of globalization and the increasing inequalities that have framed the lives of New Yorkers over the past three decades. The next section focuses on the changing conditions of life in Greenpoint and Williamsburg, as well as the ongoing community organizing around environmental justice and affordable housing. It follows the long and concerted collaboration among many community groups, churches, local politicians, and others for a fair and sustainable Community Development Plan, which came to be known as 197A. It shows how, after 9/11/2001, in Greenpoint–Williamsburg, the Bloomberg administration introduced massive plans for rezoning, overruling the previously approved Community Development Plan 197A. The final section traces the immediate impact of the 2008 global economic crisis on the half-built new condominiums precipitated by the Bloomberg rezoning.Less
This chapter opens with a brief discussion of the production of urban space and the historical contributions of Robert Moses and Jane Jacobs to the structuring of New York City. The section that follows outlines the impact of globalization and the increasing inequalities that have framed the lives of New Yorkers over the past three decades. The next section focuses on the changing conditions of life in Greenpoint and Williamsburg, as well as the ongoing community organizing around environmental justice and affordable housing. It follows the long and concerted collaboration among many community groups, churches, local politicians, and others for a fair and sustainable Community Development Plan, which came to be known as 197A. It shows how, after 9/11/2001, in Greenpoint–Williamsburg, the Bloomberg administration introduced massive plans for rezoning, overruling the previously approved Community Development Plan 197A. The final section traces the immediate impact of the 2008 global economic crisis on the half-built new condominiums precipitated by the Bloomberg rezoning.
Douglas A. Shackelford, Daniel N. Shaviro, and Joel Slemrod
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.003.0006
- Subject:
- Economics and Finance, Financial Economics
In the aftermath of the 2008 financial crisis, a variety of taxes on financial institutions have been proposed or enacted. The justifications for these taxes range from punishing those deemed to have ...
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In the aftermath of the 2008 financial crisis, a variety of taxes on financial institutions have been proposed or enacted. The justifications for these taxes range from punishing those deemed to have caused or unduly profited from the crisis, to addressing the budgetary costs of the crisis, to better aligning banks’ and bank executives’ incentives in the light of the broader social costs and benefits of their actions. Although there is a long-standing literature on corrective, or Pigouvian, taxation, most of it has been applied to environmental externalities, and the externalities that arise from the actions of financial institutions are structurally different. This chapter reviews the justifications for special taxes on financial institutions, and addresses what kinds of taxes are most likely to achieve the various stated objectives, which are often in conflict. It then critically assesses the principal taxes that have been proposed or enacted to date: financial transactions taxes, bonus taxes, and taxes on firms in the financial sector based on size, bank liabilities, or excess profits.Less
In the aftermath of the 2008 financial crisis, a variety of taxes on financial institutions have been proposed or enacted. The justifications for these taxes range from punishing those deemed to have caused or unduly profited from the crisis, to addressing the budgetary costs of the crisis, to better aligning banks’ and bank executives’ incentives in the light of the broader social costs and benefits of their actions. Although there is a long-standing literature on corrective, or Pigouvian, taxation, most of it has been applied to environmental externalities, and the externalities that arise from the actions of financial institutions are structurally different. This chapter reviews the justifications for special taxes on financial institutions, and addresses what kinds of taxes are most likely to achieve the various stated objectives, which are often in conflict. It then critically assesses the principal taxes that have been proposed or enacted to date: financial transactions taxes, bonus taxes, and taxes on firms in the financial sector based on size, bank liabilities, or excess profits.
Daniel N. Shaviro
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698165
- eISBN:
- 9780191738630
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698165.003.0007
- Subject:
- Economics and Finance, Financial Economics
Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the ...
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Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the financial crisis, but do not appear to have been among the primary causes. Even without a strong causal link, however, the pre-existing case for tax reform at all these margins arguably is strengthened by the 2008 financial crisis, which suggests that tax rules not only fell short of classic neutrality benchmarks but generally leaned in precisely the wrong direction.Less
Tax rules encouraging excessive debt, complex financial transactions, poorly designed incentive compensation for corporate managers, and highly leveraged homeownership all may have contributed to the financial crisis, but do not appear to have been among the primary causes. Even without a strong causal link, however, the pre-existing case for tax reform at all these margins arguably is strengthened by the 2008 financial crisis, which suggests that tax rules not only fell short of classic neutrality benchmarks but generally leaned in precisely the wrong direction.
Kathryn C. Lavelle
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199765348
- eISBN:
- 9780199918959
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199765348.003.0008
- Subject:
- Political Science, International Relations and Politics
This chapter concludes the study. It summarizes the findings of the empirical chapters, and thus evaluates trends in congressional advocacy for policy change in international organizations. Each ...
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This chapter concludes the study. It summarizes the findings of the empirical chapters, and thus evaluates trends in congressional advocacy for policy change in international organizations. Each phase has been shown to be a product of both the domestic institutional procedures available and the international environment. As with previous episodes, the future will be determined by the structure of the international banking system to emerge from the 2008 crisis. The chapter then makes comparisons of congressional advocacy toward the IMF and World Bank with two other international organizations: the World Trade Organization and the United Nations. The most notable difference with the World Trade Organization is the lack of a budget lever similar to the IMF and World Bank. The most notable difference with the United Nations is that it does not have the same problem with committee jurisdiction in Congress that “orphans” the Bretton Woods institutions. Nonetheless, there are many similarities. The book concludes that legislation for the IMF and World Bank has succeeded despite formidable obstacles. While the separation of powers in the American Constitution has complicated US membership in international organizations, individual members of Congress have also championed them throughout their histories.Less
This chapter concludes the study. It summarizes the findings of the empirical chapters, and thus evaluates trends in congressional advocacy for policy change in international organizations. Each phase has been shown to be a product of both the domestic institutional procedures available and the international environment. As with previous episodes, the future will be determined by the structure of the international banking system to emerge from the 2008 crisis. The chapter then makes comparisons of congressional advocacy toward the IMF and World Bank with two other international organizations: the World Trade Organization and the United Nations. The most notable difference with the World Trade Organization is the lack of a budget lever similar to the IMF and World Bank. The most notable difference with the United Nations is that it does not have the same problem with committee jurisdiction in Congress that “orphans” the Bretton Woods institutions. Nonetheless, there are many similarities. The book concludes that legislation for the IMF and World Bank has succeeded despite formidable obstacles. While the separation of powers in the American Constitution has complicated US membership in international organizations, individual members of Congress have also championed them throughout their histories.
Vincent Antonin Lépinay
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691151502
- eISBN:
- 9781400840465
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691151502.001.0001
- Subject:
- Economics and Finance, Financial Economics
The financial industry's invention of complex products such as credit default swaps and other derivatives has been widely blamed for triggering the global financial crisis of 2008. This book takes ...
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The financial industry's invention of complex products such as credit default swaps and other derivatives has been widely blamed for triggering the global financial crisis of 2008. This book takes readers behind the scenes of the equity derivatives business at the bank before the crisis, providing a detailed firsthand account of the creation, marketing, selling, accounting, and management of these financial instruments-and of how they ultimately created havoc inside and outside the bank. The book explains how financial operators and financial products coexist and how this coexistence is tense because the bank deals with innovative products that yield unexpected reactions on unevenly charted markets. The book is also a case study of economic derivation, but rather than look at derivatives as a class of economic goods, it studies derivation as a process.Less
The financial industry's invention of complex products such as credit default swaps and other derivatives has been widely blamed for triggering the global financial crisis of 2008. This book takes readers behind the scenes of the equity derivatives business at the bank before the crisis, providing a detailed firsthand account of the creation, marketing, selling, accounting, and management of these financial instruments-and of how they ultimately created havoc inside and outside the bank. The book explains how financial operators and financial products coexist and how this coexistence is tense because the bank deals with innovative products that yield unexpected reactions on unevenly charted markets. The book is also a case study of economic derivation, but rather than look at derivatives as a class of economic goods, it studies derivation as a process.
José Antonio Ocampo, Stephany Griffith-Jones, Akbar Noman, Ariane Ortiz, Juliana Vallejo, and Judith Tyson
- Published in print:
- 2012
- Published Online:
- November 2015
- ISBN:
- 9780231159661
- eISBN:
- 9780231504393
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231159661.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter analyzes the 2008 financial crisis and its effects on the developing world. This crisis was a result of diverse factors that combined in an explosive mix, with two particular traits that ...
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This chapter analyzes the 2008 financial crisis and its effects on the developing world. This crisis was a result of diverse factors that combined in an explosive mix, with two particular traits that mark this crisis as a unique and ostensibly widespread, international phenomenon: the global impact of the crisis, and its epicenter in the United States, the most developed and sophisticated market in the world. For the first time, an episode of instability had nothing to do with the behavior of developing countries. In fact, it is due to the recovery capacity of a group of developing countries that the dynamism of the international economy did not fall further. The world has become increasingly dependent on these “emerging markets,” given that the calls for global financial reform seek a departure of the post-World War II emphasis on industrial-based institutions and onto the increased participation of developing countries.Less
This chapter analyzes the 2008 financial crisis and its effects on the developing world. This crisis was a result of diverse factors that combined in an explosive mix, with two particular traits that mark this crisis as a unique and ostensibly widespread, international phenomenon: the global impact of the crisis, and its epicenter in the United States, the most developed and sophisticated market in the world. For the first time, an episode of instability had nothing to do with the behavior of developing countries. In fact, it is due to the recovery capacity of a group of developing countries that the dynamism of the international economy did not fall further. The world has become increasingly dependent on these “emerging markets,” given that the calls for global financial reform seek a departure of the post-World War II emphasis on industrial-based institutions and onto the increased participation of developing countries.
Heather Whiteside, Stephen McBride, and Bryan M. Evans
- Published in print:
- 2021
- Published Online:
- January 2022
- ISBN:
- 9781529212242
- eISBN:
- 9781529212273
- Item type:
- chapter
- Publisher:
- Policy Press
- DOI:
- 10.1332/policypress/9781529212242.003.0001
- Subject:
- Political Science, Comparative Politics
This introductory chapter considers the history and extent of austerity measures used globally since 2008. It examines the common thread of these austerity measures, before turning to explore the ...
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This introductory chapter considers the history and extent of austerity measures used globally since 2008. It examines the common thread of these austerity measures, before turning to explore the issue of how much variety there has been within this common framework. To assist with this, the chapter briefly presents a selection of national cases — Canada, Denmark, Ireland, and Spain. These countries are differently situated within the main typologies of comparative public policy and political economy that categorize countries by type of welfare state and variety of capitalism. The comparative political economy of welfare states and types of economy has yielded two major classification systems. The most famous welfare state typology identified three types — liberal, social democratic, and conservative/corporatist — and advanced explanations for their development and characteristics. The chapter considers how these nations fit into these typologies and how they present varieties of austerity.Less
This introductory chapter considers the history and extent of austerity measures used globally since 2008. It examines the common thread of these austerity measures, before turning to explore the issue of how much variety there has been within this common framework. To assist with this, the chapter briefly presents a selection of national cases — Canada, Denmark, Ireland, and Spain. These countries are differently situated within the main typologies of comparative public policy and political economy that categorize countries by type of welfare state and variety of capitalism. The comparative political economy of welfare states and types of economy has yielded two major classification systems. The most famous welfare state typology identified three types — liberal, social democratic, and conservative/corporatist — and advanced explanations for their development and characteristics. The chapter considers how these nations fit into these typologies and how they present varieties of austerity.
Heather Whiteside, Stephen McBride, and Bryan M. Evans
- Published in print:
- 2021
- Published Online:
- January 2022
- ISBN:
- 9781529212242
- eISBN:
- 9781529212273
- Item type:
- chapter
- Publisher:
- Policy Press
- DOI:
- 10.1332/policypress/9781529212242.003.0002
- Subject:
- Political Science, Comparative Politics
This chapter provides an economic background for fiscal adjustments and drivers of spending in an austere time. It begins with national snapshots of each country's fiscal–financial condition when the ...
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This chapter provides an economic background for fiscal adjustments and drivers of spending in an austere time. It begins with national snapshots of each country's fiscal–financial condition when the 2008 crisis first hit, weaving in, where appropriate, an historical overview. The analysis includes assessment of factors such as domestic economic imbalances, financial and housing bubbles, and exposure to international economic downturn. It also delineates national and cross-national banking-sector dynamics as identified in measures like stimulus and guarantees (credit underwriting, insurance support, and the like); bailouts (asset taking, nationalization); write-offs and taxpayer-borne risks; partnerships and privatization; and international pressures (from supranational institutions and investors). These varied responses involved mobilizing, creating or reconfiguring public sector institutions, insulating the banking sector from a crisis of its own making, and blaming the state for debt and deficits that will be used to insinuate public sector culpability.Less
This chapter provides an economic background for fiscal adjustments and drivers of spending in an austere time. It begins with national snapshots of each country's fiscal–financial condition when the 2008 crisis first hit, weaving in, where appropriate, an historical overview. The analysis includes assessment of factors such as domestic economic imbalances, financial and housing bubbles, and exposure to international economic downturn. It also delineates national and cross-national banking-sector dynamics as identified in measures like stimulus and guarantees (credit underwriting, insurance support, and the like); bailouts (asset taking, nationalization); write-offs and taxpayer-borne risks; partnerships and privatization; and international pressures (from supranational institutions and investors). These varied responses involved mobilizing, creating or reconfiguring public sector institutions, insulating the banking sector from a crisis of its own making, and blaming the state for debt and deficits that will be used to insinuate public sector culpability.
Cornelia Woll
- Published in print:
- 2014
- Published Online:
- August 2016
- ISBN:
- 9780801452352
- eISBN:
- 9780801471155
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9780801452352.003.0002
- Subject:
- Political Science, Political Economy
This chapter details the nationwide bailout efforts across industrialized countries during the 2008 global financial crisis. Alongside central bank efforts to provide liquidity to struggling ...
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This chapter details the nationwide bailout efforts across industrialized countries during the 2008 global financial crisis. Alongside central bank efforts to provide liquidity to struggling financial institutions, governments made public budgets available for bank support schemes. Compared to the United States, the United Kingdom's plan is striking for its stringent conditions, particularly the pricing of its recapitalization. However, the British plan risked costing more than the U.S. plan. The French plan appears to have been more favorable to the financial industry than the German plan but relied in part on a public-private entity for its execution and ended up producing a surplus for the public budget. The Danish plan looked similar to the Irish scheme. However, the Irish scheme's outlays were equally high and the fiscal impact is likely to be very substantial, while the Danish scheme succeeded in keeping outlays low, particularly through the management of a joint public-private initiative.Less
This chapter details the nationwide bailout efforts across industrialized countries during the 2008 global financial crisis. Alongside central bank efforts to provide liquidity to struggling financial institutions, governments made public budgets available for bank support schemes. Compared to the United States, the United Kingdom's plan is striking for its stringent conditions, particularly the pricing of its recapitalization. However, the British plan risked costing more than the U.S. plan. The French plan appears to have been more favorable to the financial industry than the German plan but relied in part on a public-private entity for its execution and ended up producing a surplus for the public budget. The Danish plan looked similar to the Irish scheme. However, the Irish scheme's outlays were equally high and the fiscal impact is likely to be very substantial, while the Danish scheme succeeded in keeping outlays low, particularly through the management of a joint public-private initiative.
André Orléan
- Published in print:
- 2014
- Published Online:
- January 2015
- ISBN:
- 9780262026970
- eISBN:
- 9780262323901
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262026970.001.0001
- Subject:
- Economics and Finance, Financial Economics
With the advent of the 2007-2008 financial crisis, the economics profession itself entered into a crisis of legitimacy from which it has yet to emerge. Despite the obviousness of its failures, ...
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With the advent of the 2007-2008 financial crisis, the economics profession itself entered into a crisis of legitimacy from which it has yet to emerge. Despite the obviousness of its failures, however, economists continue to rely on the same methods and to proceed from the same underlying assumptions. André Orléan challenges the neoclassical paradigm in this book, with a new way of thinking about its most fundamental concept, economic value. Orléan argues that value is not bound up with labor, or utility, or any other property that preexists market exchange. Economic value, he contends, is a social force whose vast sphere of influence, amounting to a kind of empire, extends to every aspect of economic life. Markets are based on the identification of value with money, and exchange value can only be regarded as a social institution. Financial markets, for example, instead of defining a neutral, objective value for securities, act as a mechanism for arriving at a reference price that will be accepted by all investors. What economists must therefore study is the hold that value has over individuals and how it shapes their perceptions and behavior. The MIT Press edition of this book, originally published in French, has been substantially revised and enlarged, with an entirely new section discussing the recent financial crisis.Less
With the advent of the 2007-2008 financial crisis, the economics profession itself entered into a crisis of legitimacy from which it has yet to emerge. Despite the obviousness of its failures, however, economists continue to rely on the same methods and to proceed from the same underlying assumptions. André Orléan challenges the neoclassical paradigm in this book, with a new way of thinking about its most fundamental concept, economic value. Orléan argues that value is not bound up with labor, or utility, or any other property that preexists market exchange. Economic value, he contends, is a social force whose vast sphere of influence, amounting to a kind of empire, extends to every aspect of economic life. Markets are based on the identification of value with money, and exchange value can only be regarded as a social institution. Financial markets, for example, instead of defining a neutral, objective value for securities, act as a mechanism for arriving at a reference price that will be accepted by all investors. What economists must therefore study is the hold that value has over individuals and how it shapes their perceptions and behavior. The MIT Press edition of this book, originally published in French, has been substantially revised and enlarged, with an entirely new section discussing the recent financial crisis.
Stephany Griffith-Jones and José Antonio Ocampo
- Published in print:
- 2012
- Published Online:
- November 2015
- ISBN:
- 9780231159661
- eISBN:
- 9780231504393
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231159661.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter evaluates the response of the international community to the financial crisis, which has called into question some of the ideas upon which economic management has been based through ...
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This chapter evaluates the response of the international community to the financial crisis, which has called into question some of the ideas upon which economic management has been based through previous decades. Specifically, the crisis confirmed the excessive trust that was afforded by economic authorities in major industrial countries in the efficiency of financial markets in terms of their ability to self-regulate and adequately measure risk. This excessive trust fueled the loose regulatory stance evident in some of the most affected markets. In contrast with that stance, the crisis has showed that stability must be maintained through adequate regulation and cautious supervision of such markets, where powerful externalities operate amid imperfect and asymmetric information.Less
This chapter evaluates the response of the international community to the financial crisis, which has called into question some of the ideas upon which economic management has been based through previous decades. Specifically, the crisis confirmed the excessive trust that was afforded by economic authorities in major industrial countries in the efficiency of financial markets in terms of their ability to self-regulate and adequately measure risk. This excessive trust fueled the loose regulatory stance evident in some of the most affected markets. In contrast with that stance, the crisis has showed that stability must be maintained through adequate regulation and cautious supervision of such markets, where powerful externalities operate amid imperfect and asymmetric information.
Andrew Mold and Annalisa Prizzon
- Published in print:
- 2012
- Published Online:
- November 2015
- ISBN:
- 9780231159661
- eISBN:
- 9780231504393
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231159661.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines the effect the financial crisis may have on development funding and on flows of international aid. The results of previous crises have been varied, indicating that the effect on ...
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This chapter examines the effect the financial crisis may have on development funding and on flows of international aid. The results of previous crises have been varied, indicating that the effect on aid is highly dependent on the severity of a given crisis and on the political will of governments and the priorities that they establish. Examples of other periods of instability reveal that if a fall in resources occurs, it tends to happen some time after the start of the crisis (one year to two years later). This helps explain the relative stability of aid flows during the first phases of the current crisis and suggests that the effects of the recession on aid may yet be felt during later budgetary cycles. It is, therefore, essential to emphasize the need for countries to maintain their international aid commitments.Less
This chapter examines the effect the financial crisis may have on development funding and on flows of international aid. The results of previous crises have been varied, indicating that the effect on aid is highly dependent on the severity of a given crisis and on the political will of governments and the priorities that they establish. Examples of other periods of instability reveal that if a fall in resources occurs, it tends to happen some time after the start of the crisis (one year to two years later). This helps explain the relative stability of aid flows during the first phases of the current crisis and suggests that the effects of the recession on aid may yet be felt during later budgetary cycles. It is, therefore, essential to emphasize the need for countries to maintain their international aid commitments.
Young-Hwa Seok and Hyun Song Shin
- Published in print:
- 2013
- Published Online:
- November 2015
- ISBN:
- 9780231165266
- eISBN:
- 9780231536462
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231165266.003.0005
- Subject:
- Economics and Finance, International
This chapter considers the phenomenon of financial globalization. This type of globalization is organized within the role of financial intermediaries, especially banks, in the proliferation of ...
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This chapter considers the phenomenon of financial globalization. This type of globalization is organized within the role of financial intermediaries, especially banks, in the proliferation of financial cycles. Firstly, this chapter reviews the merits of financial globalization with particular attention to the effects of unhindered capital flows. Secondly, it analyzes these effects against the financial system as a whole of the balance sheet management done by the financial intermediaries, after which the next section applies these insights to four certain episodes; namely, the 2008 liquidity crisis in Korea, Japans experience in the 1980s, US financial crisis of 2007–2009, and the European crisis that began in 2010. The chapter concludes with an emphasis on the importance of macro-prudential policies.Less
This chapter considers the phenomenon of financial globalization. This type of globalization is organized within the role of financial intermediaries, especially banks, in the proliferation of financial cycles. Firstly, this chapter reviews the merits of financial globalization with particular attention to the effects of unhindered capital flows. Secondly, it analyzes these effects against the financial system as a whole of the balance sheet management done by the financial intermediaries, after which the next section applies these insights to four certain episodes; namely, the 2008 liquidity crisis in Korea, Japans experience in the 1980s, US financial crisis of 2007–2009, and the European crisis that began in 2010. The chapter concludes with an emphasis on the importance of macro-prudential policies.
Christopher A. Ford
- Published in print:
- 2015
- Published Online:
- January 2016
- ISBN:
- 9780813165400
- eISBN:
- 9780813165424
- Item type:
- chapter
- Publisher:
- University Press of Kentucky
- DOI:
- 10.5810/kentucky/9780813165400.003.0014
- Subject:
- Political Science, International Relations and Politics
This chapter looks at how Chinese attitudes and perceptions of the United States changed in 2008 due to the financial crisis, the election of Barack Obama, and the 2008 Summer Olympics in Beijing. ...
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This chapter looks at how Chinese attitudes and perceptions of the United States changed in 2008 due to the financial crisis, the election of Barack Obama, and the 2008 Summer Olympics in Beijing. China’s perception of America’s decline made party leaders worry that the U.S. financial model would fail like the USSR and Japan, leaving China without a foreign role model. Taoist nationalism became less popular as China found itself in a position of relative power, and thanks to the Olympics being held in Beijing, a position to demonstrate that comprehensive national power to the rest of the world.Less
This chapter looks at how Chinese attitudes and perceptions of the United States changed in 2008 due to the financial crisis, the election of Barack Obama, and the 2008 Summer Olympics in Beijing. China’s perception of America’s decline made party leaders worry that the U.S. financial model would fail like the USSR and Japan, leaving China without a foreign role model. Taoist nationalism became less popular as China found itself in a position of relative power, and thanks to the Olympics being held in Beijing, a position to demonstrate that comprehensive national power to the rest of the world.
Silvia M. Lindtner
- Published in print:
- 2020
- Published Online:
- May 2021
- ISBN:
- 9780691207674
- eISBN:
- 9780691204956
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691207674.003.0003
- Subject:
- Anthropology, Social and Cultural Anthropology
This chapter details the making of a “new” China. It demonstrates how a growing distrust of modernist ideals of progress in the broader tech and design imagination following the financial crisis of ...
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This chapter details the making of a “new” China. It demonstrates how a growing distrust of modernist ideals of progress in the broader tech and design imagination following the financial crisis of 2007–2008 found expression in shifting engagements with China. Specifically, the chapter focuses on how a series of influential actors, entangled with Western networks of investment, open source hardware, the arts, and design, turned to Shenzhen to make sense of technology's broken promises and partially redeem them. They portrayed China through colonial tropes of othering, framing its alleged backwardness, its associations with fake and copycat, as an opportunity space, to be celebrated for its difference. As technology was increasingly disassociated from its promise of modern progress, a new concern arose — that of the ethics and morality of the designer and engineer. Ultimately, Shenzhen was framed as a laboratory of exuberant scale that enabled the prototyping of a moral designer and engineer self who could claim to recuperate technological promise.Less
This chapter details the making of a “new” China. It demonstrates how a growing distrust of modernist ideals of progress in the broader tech and design imagination following the financial crisis of 2007–2008 found expression in shifting engagements with China. Specifically, the chapter focuses on how a series of influential actors, entangled with Western networks of investment, open source hardware, the arts, and design, turned to Shenzhen to make sense of technology's broken promises and partially redeem them. They portrayed China through colonial tropes of othering, framing its alleged backwardness, its associations with fake and copycat, as an opportunity space, to be celebrated for its difference. As technology was increasingly disassociated from its promise of modern progress, a new concern arose — that of the ethics and morality of the designer and engineer. Ultimately, Shenzhen was framed as a laboratory of exuberant scale that enabled the prototyping of a moral designer and engineer self who could claim to recuperate technological promise.
Mallory E. SoRelle
- Published in print:
- 2020
- Published Online:
- May 2021
- ISBN:
- 9780226711652
- eISBN:
- 9780226711829
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226711829.001.0001
- Subject:
- Political Science, American Politics
Borrowing has become the American way of life. We increasingly rely on consumer credit to purchase daily necessities and to weather unexpected emergencies. But borrowing to live is a double-edged ...
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Borrowing has become the American way of life. We increasingly rely on consumer credit to purchase daily necessities and to weather unexpected emergencies. But borrowing to live is a double-edged sword: While access to credit can help people afford the American dream, borrowing also exposes them to high interest rates, fees, and mounting debt that can quickly turn into a financial nightmare. Despite this threat, policymakers haven’t put an end to predatory lending, borrowers haven’t taken political action to demand better financial protection, and consumer groups haven’t been able to change either trend—even after the 2008 global financial crisis. Democracy Declined argues that the failure to curb predatory lending through political participation is the product of a U.S. political economy of credit—a self-reinforcing cycle of policy development and subsequent policy feedback effects. Drawing on historical records, interviews, and original survey and experimental data, the book charts how federal policymakers embraced broad access to consumer credit to grow the national economy, motivating them to adopt consumer financial protections that safeguard that access. The resulting regulatory regime relies on information disclosures that teach borrowers to blame themselves and their banks for financial problems, minimizing people’s incentives to turn to politics to demand change. Compelled by the need to preserve credit access and without the countervailing force of voter mobilization, Democracy Declined explores how this feedback loop limits the prospects for meaningful consumer financial reform, threatening the economic security of American borrowers and the U.S. economy while exacerbating existing economic inequality.Less
Borrowing has become the American way of life. We increasingly rely on consumer credit to purchase daily necessities and to weather unexpected emergencies. But borrowing to live is a double-edged sword: While access to credit can help people afford the American dream, borrowing also exposes them to high interest rates, fees, and mounting debt that can quickly turn into a financial nightmare. Despite this threat, policymakers haven’t put an end to predatory lending, borrowers haven’t taken political action to demand better financial protection, and consumer groups haven’t been able to change either trend—even after the 2008 global financial crisis. Democracy Declined argues that the failure to curb predatory lending through political participation is the product of a U.S. political economy of credit—a self-reinforcing cycle of policy development and subsequent policy feedback effects. Drawing on historical records, interviews, and original survey and experimental data, the book charts how federal policymakers embraced broad access to consumer credit to grow the national economy, motivating them to adopt consumer financial protections that safeguard that access. The resulting regulatory regime relies on information disclosures that teach borrowers to blame themselves and their banks for financial problems, minimizing people’s incentives to turn to politics to demand change. Compelled by the need to preserve credit access and without the countervailing force of voter mobilization, Democracy Declined explores how this feedback loop limits the prospects for meaningful consumer financial reform, threatening the economic security of American borrowers and the U.S. economy while exacerbating existing economic inequality.
Ergin Bulut
- Published in print:
- 2020
- Published Online:
- September 2020
- ISBN:
- 9781501746529
- eISBN:
- 9781501746543
- Item type:
- chapter
- Publisher:
- Cornell University Press
- DOI:
- 10.7591/cornell/9781501746529.003.0001
- Subject:
- History, History of Science, Technology, and Medicine
This introductory chapter provides an overview of precarious labor in the video game industry. The emergence of video games as a medium goes back to a moment of “refusal of work” when Pentagon ...
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This introductory chapter provides an overview of precarious labor in the video game industry. The emergence of video games as a medium goes back to a moment of “refusal of work” when Pentagon scientists, tasked with beating the USSR during the Cold War, ended up creating ludic experiences on their work computers during times of boredom. Today, contemporary video game production is a serious, lucrative business. Tracing Studio Desire's transition from its early days as an independent studio to a financialized structure after its acquisition by Digital Creatives in the 2000s, this book examines the inequalities that structure the lives of game developers in the aftermath of the 2008 financial crisis. It unpacks Studio Desire's story as it unfolds through four interlinked processes: rationalization upon acquisition, spatialization, financialization, and precarization. Among these, precarization anchors the whole story.Less
This introductory chapter provides an overview of precarious labor in the video game industry. The emergence of video games as a medium goes back to a moment of “refusal of work” when Pentagon scientists, tasked with beating the USSR during the Cold War, ended up creating ludic experiences on their work computers during times of boredom. Today, contemporary video game production is a serious, lucrative business. Tracing Studio Desire's transition from its early days as an independent studio to a financialized structure after its acquisition by Digital Creatives in the 2000s, this book examines the inequalities that structure the lives of game developers in the aftermath of the 2008 financial crisis. It unpacks Studio Desire's story as it unfolds through four interlinked processes: rationalization upon acquisition, spatialization, financialization, and precarization. Among these, precarization anchors the whole story.
Hal S. Scott
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780262034371
- eISBN:
- 9780262332156
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262034371.003.0007
- Subject:
- Economics and Finance, Economic History
This chapter describes how contagion principally manifested itself in the nonbank sector during the 2008 financial crisis. The Lehman bankruptcy and ensuing breaking of the buck by the Reserve ...
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This chapter describes how contagion principally manifested itself in the nonbank sector during the 2008 financial crisis. The Lehman bankruptcy and ensuing breaking of the buck by the Reserve Primary Fund (RPF) highlight the centrality of nonbank financial institutions in the contagion context. Contagion effects spread from the money market funds to asset-backed commercial paper (ABCP), interbank lending, and secured repo markets as well as to other areas of the nondepository banking system. Contagion in short-term capital markets also shook confidence in the ability of the surviving investment banks to continue funding themselves. The government's response to the financial crisis include the Federal Reserve's approval of an $85 billion secured revolving credit facility for AIG under Section 13(3) of the Federal Reserve Act; and its launching of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), which lent to banks so they could purchase asset-backed commercial paper from money market funds.Less
This chapter describes how contagion principally manifested itself in the nonbank sector during the 2008 financial crisis. The Lehman bankruptcy and ensuing breaking of the buck by the Reserve Primary Fund (RPF) highlight the centrality of nonbank financial institutions in the contagion context. Contagion effects spread from the money market funds to asset-backed commercial paper (ABCP), interbank lending, and secured repo markets as well as to other areas of the nondepository banking system. Contagion in short-term capital markets also shook confidence in the ability of the surviving investment banks to continue funding themselves. The government's response to the financial crisis include the Federal Reserve's approval of an $85 billion secured revolving credit facility for AIG under Section 13(3) of the Federal Reserve Act; and its launching of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), which lent to banks so they could purchase asset-backed commercial paper from money market funds.
Silke Ötsch, Pier Paolo Pasqualoni, and Alan Scott
- Published in print:
- 2013
- Published Online:
- January 2013
- ISBN:
- 9780199595341
- eISBN:
- 9780191750755
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199595341.003.0010
- Subject:
- Business and Management, Political Economy
This chapter focuses on a less frequently discussed aspect of the New Spirit of Capitalism: its analysis of the potential for a renewal of capitalism critique emerging out of, and in reaction ...
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This chapter focuses on a less frequently discussed aspect of the New Spirit of Capitalism: its analysis of the potential for a renewal of capitalism critique emerging out of, and in reaction against, the project cité. We take up this theme via a case study: the globalization critical/alter-globalization social movements Attac, which started in France as a response to the Asia crisis in the late 1990s and rapidly spread to become a significant movement, particularly in Continental Europe. The chapter offers both an analysis of this social movement organization (SMO) and an examination of the opportunities and dilemmas it faces in the wake of the 2008 financial crisis. With respect to the latter, the chapter examines the increasing reliance on policy instruments as a mode of governance. This, we argue, has significantly altered the context and opportunity structures in which social movement organizations and NGOs must operate. We conclude by suggesting that the current context requires less an examination of capitalism's new ‘spirit’ than of its new ‘steal-hard casing,’ better known as the iron cage.Less
This chapter focuses on a less frequently discussed aspect of the New Spirit of Capitalism: its analysis of the potential for a renewal of capitalism critique emerging out of, and in reaction against, the project cité. We take up this theme via a case study: the globalization critical/alter-globalization social movements Attac, which started in France as a response to the Asia crisis in the late 1990s and rapidly spread to become a significant movement, particularly in Continental Europe. The chapter offers both an analysis of this social movement organization (SMO) and an examination of the opportunities and dilemmas it faces in the wake of the 2008 financial crisis. With respect to the latter, the chapter examines the increasing reliance on policy instruments as a mode of governance. This, we argue, has significantly altered the context and opportunity structures in which social movement organizations and NGOs must operate. We conclude by suggesting that the current context requires less an examination of capitalism's new ‘spirit’ than of its new ‘steal-hard casing,’ better known as the iron cage.
