Why Not Default? Roos, Jerome E
2019, 20190212, 2019-02-12
eBook
How creditors came to wield unprecedented power over heavily indebted countries-and the dangers this poses to democracy
The European debt crisis has rekindled long-standing debates about the power of ...finance and the fraught relationship between capitalism and democracy in a globalized world.Why Not Default?unravels a striking puzzle at the heart of these debates-why, despite frequent crises and the immense costs of repayment, do so many heavily indebted countries continue to service their international debts?
In this compelling and incisive book, Jerome Roos provides a sweeping investigation of the political economy of sovereign debt and international crisis management. He takes readers from the rise of public borrowing in the Italian city-states to the gunboat diplomacy of the imperialist era and the wave of sovereign defaults during the Great Depression. He vividly describes the debt crises of developing countries in the 1980s and 1990s and sheds new light on the recent turmoil inside the Eurozone-including the dramatic capitulation of Greece's short-lived anti-austerity government to its European creditors in 2015.
Drawing on in-depth case studies of contemporary debt crises in Mexico, Argentina, and Greece,Why Not Default?paints a disconcerting picture of the ascendancy of global finance. This important book shows how the profound transformation of the capitalist world economy over the past four decades has endowed private and official creditors with unprecedented structural power over heavily indebted borrowers, enabling them to impose painful austerity measures and enforce uninterrupted debt service during times of crisis-with devastating social consequences and far-reaching implications for democracy.
At the beginning of the 1990s, a massive speculative asset bubble burst in Japan, leaving the nation's banks with an enormous burden of nonperforming loans. Banking crises have become increasingly ...common across the globe, but what was distinctive about the Japanese case was the unusually long delay before the government intervened to aggressively address the bad debt problem. The postponed response by Japanese authorities to the nation's banking crisis has had enormous political and economic consequences for Japan as well as for the rest of the world. This book helps us understand the nature of the Japanese government's response while also providing important insights into why Japan seems unable to get its financial system back on track 13 years later.
The book focuses on the role of policy networks in Japanese finance, showing with nuance and detail how Japan's Finance Ministry was embedded within the political and financial worlds, how that structure was similar to and different from that of its counterparts in other countries, and how the distinctive nature of Japan's institutional arrangements affected the capacity of the government to manage change.
The book focuses in particular on two intervening variables that bring about a functional shift in the Finance Ministry's policy networks: domestic political change under coalition government and a dramatic rise in information requirements for effective regulation. As a result of change in these variables, networks that once enhanced policymaking capacity in Japanese finance became "paralyzing networks"--with disastrous results.
This volume argues that the crisis of the European Union is not merely a fiscal crisis but reveals and amplifies deeper flaws in the structure of the EU itself. It is a multidimensional crisis of the ...economic, legal and political cornerstones of European integration and marks the end of the technocratic mode of integration which has been dominant since the 1950s. The EU has a weak political and administrative centre, relies excessively on governance by law, is challenged by increasing heterogeneity and displays increasingly interlocked levels of government. During the crisis, it has become more and more asymmetrical and has intervened massively in domestic economic and legal systems. A team of economists, lawyers, philosophers and political scientists analyze these deeper dimensions of the European crisis from a broader theoretical perspective with a view towards contributing to a better understanding and shaping the trajectory of the EU.
The financial crisis has refocused attention on money and credit fluctuations, financial crises, and policy responses. We study the behavior of money, credit, and macroeconomic indicators over the ...long run based on a new historical dataset for 14 countries over the years 1870–2008. Total credit has increased strongly relative to output and money in the second half of the twentieth century. Monetary policy responses to financial crises have also been more aggressive, but the output costs of crises have remained large. Credit growth is a powerful predictor of financial crises, suggesting that policymakers ignore credit at their peril. JEL: E32, E44, E52, G01, N10, N20
The implications of capital mobility for growth and stability are some of the most contentious and least understood contemporary issues in economics. In this book, Barry Eichengreen discusses ...historical, theoretical, empirical, and policy aspects of the effects, both positive and negative, of capital flows. He focuses on the connections between capital flows and crises as well as on those between capital flows and growth. Eichengreen argues that international financial liberalization, like other forms of economic liberalization, can positively affect the efficiency of resource allocation and the rate of economic growth. But analyses of both recent and historical experience also show an undeniable association between capital mobility and crises, especially when domestic institutions are weak and the harmonization of capital account liberalization and other policy reforms is inadequate. In his conclusion, Eichengreen makes suggestions for policy design to maximize the benefits of international financial liberalization while minimizing the risks of financial instability.
Reorganising Power in Indonesia is a new and distinctive analysis of the dramatic fall of Soeharto, the last of the great Cold War capitalist dictators, and of the struggles that reshape power and ...wealth in Indonesia. The dramatic events of the past two decades are understood essentially in terms of the rise of a complex politico-business oligarchy and the ongoing reorganisation of its power through successive crises, colonising and expropriating new political and market institutions. With the collapse of authoritarian rule, the authors propose that the way was left open for this oligarchy to reconstitute its power within society and the institutions of newly democratic Indonesia.
Crisis management has become a defining feature of contemporary governance. In times of crisis, communities and members of organizations expect their leaders to minimize the impact of the crisis at ...hand, while critics and bureaucratic competitors try to seize the moment to blame incumbent rulers and their policies. In this extreme environment, policy makers must somehow establish a sense of normality, and foster collective learning from the crisis experience. In this uniquely comprehensive analysis, the authors examine how leaders deal with the strategic challenges they face, the political risks and opportunities they encounter, the errors they make, the pitfalls they need to avoid, and the paths away from crisis they may pursue. This book is grounded in over a decade of collaborative, cross-national case study research, and offers an invaluable multidisciplinary perspective. This is an original and important contribution from experts in public policy and international security.
Organizational research has long been interested in crises and crisis management. Whether focused on crisis antecedents, outcomes, or managing a crisis, research has revealed a number of important ...findings. However, research in this space remains fragmented, making it difficult for scholars to understand the literature’s core conclusions, recognize unsolved problems, and navigate paths forward. To address these issues, we propose an integrative framework of crises and crisis management that draws from research in strategy, organizational theory, and organizational behavior as well as from research in public relations and corporate communication. We identify two primary perspectives in the literature, one focused on the internal dynamics of a crisis and one focused on managing external stakeholders. We review core concepts from each perspective and highlight the commonalities that exist between them. Finally, we use our integrative framework to propose future research directions for scholars interested in crises and crisis management.
The first crash Dale, Richard
2004., 20140424, 2014, 2004, 2005-01-01
eBook
For nearly three centuries the spectacular rise and fall of the South Sea Company has gripped the public imagination as the most graphic warning to investors of the dangers of unbridled speculation. ...Yet history repeats itself and the same elemental forces that drove up the price of South Sea shares to dizzying heights in 1720 have in recent years produced the global crash of 1987, the Japanese stock market bubble of the 1980s/90s, and the international dot.com boom of the 1990s.
The First Crashthrows light on the current debate about investor rationality by re-examining the story of the South Sea Bubble from the standpoint of investors and commentators during and preceding the fateful Bubble year. In absorbing prose, Richard Dale describes the trading techniques of London's Exchange Alley (which included 'modern' transactions such as derivatives) and uses new data, as well as the hitherto neglected writings of a brilliant contemporary financial analyst, to show how investors lost their bearings during the Bubble period in much the same way as during the dot.com boom.
The events of 1720, as presented here, offer insights into the nature of financial markets that, being independent of place and time, deserve to be considered by today's investors everywhere. This book is therefore aimed at all those with an interest in the behavior of stock markets.
What makes a well-functioning governmental crisis management system, and how can this be studied using an organization theory–based approach? A core argument is that such a system needs both ...governance capacity and governance legitimacy. Organizational arrangements as well as the legitimacy of government authorities will affect crisis management performance. A central argument is that both structural features and cultural context matter, as does the nature of the crisis. Is it a transboundary crisis? How unique is it, and how much uncertainty is associated with it? The arguments are substantiated with empirical examples and supported by a literature synthesis, focusing on public administration research. A main conclusion is that there is no optimal formula for harmonizing competing interests and tensions or for overcoming uncertainty and ambiguous government structures. Flexibility and adaptation are key assets, which are constrained by the political, administrative, and situational context. Furthermore, a future research agenda is indicated.
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