Pub Date : 2022-11-16DOI: 10.1080/13563467.2022.2140795
M. Campbell-Verduyn, Marc Lenglet
ABSTRACT The notion of ‘RegTech’ has become a buzzword for applications of emergent technologies to regulatory activities. This paper contextualises and interrogates the novelty of the RegTech phenomenon as expounded in recent years by industry practitioners, regulators and a growing chorus of scholars. Harnessing the notion of ‘imaginary’ from Science and Technology Studies, we identify a particular solutionist vision materialising across public documents from national and international financial regulators, industry organisations, as well as RegTech and consulting firms. We identify two failures of an emerging RegTech imaginary. First, is a dynamism failure in the way RegTech materialises static visions of regulation. Second, is a systems failure as the solutionist RegTech imaginary focuses on narrower, individual problems in finance at the expense of wider changes occurring since the 2007–8 global financial crisis. RegTech, we conclude, reflects continuities with a pre-crisis era and fails to tackle key market and regulatory changes occurring since. Our analysis holds implications for the turn to technological solutions in addressing persistent issues of instability in global financial governance. We point to the need for developing wider imaginaries of technological possibilities for regulation in an increasingly digital world.
{"title":"Imaginary failure: RegTech in finance","authors":"M. Campbell-Verduyn, Marc Lenglet","doi":"10.1080/13563467.2022.2140795","DOIUrl":"https://doi.org/10.1080/13563467.2022.2140795","url":null,"abstract":"ABSTRACT The notion of ‘RegTech’ has become a buzzword for applications of emergent technologies to regulatory activities. This paper contextualises and interrogates the novelty of the RegTech phenomenon as expounded in recent years by industry practitioners, regulators and a growing chorus of scholars. Harnessing the notion of ‘imaginary’ from Science and Technology Studies, we identify a particular solutionist vision materialising across public documents from national and international financial regulators, industry organisations, as well as RegTech and consulting firms. We identify two failures of an emerging RegTech imaginary. First, is a dynamism failure in the way RegTech materialises static visions of regulation. Second, is a systems failure as the solutionist RegTech imaginary focuses on narrower, individual problems in finance at the expense of wider changes occurring since the 2007–8 global financial crisis. RegTech, we conclude, reflects continuities with a pre-crisis era and fails to tackle key market and regulatory changes occurring since. Our analysis holds implications for the turn to technological solutions in addressing persistent issues of instability in global financial governance. We point to the need for developing wider imaginaries of technological possibilities for regulation in an increasingly digital world.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"468 - 482"},"PeriodicalIF":4.2,"publicationDate":"2022-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43379305","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-16DOI: 10.1080/13563467.2022.2147494
Alisha Bhagat, Rachel Phillips
ABSTRACT In this exploratory article, we aim to open a research agenda for renewed attention to the relationship between the capitalist state and the technology ecosystem. Over the last decade, private technology companies have increasingly become enmeshed with the activities of the state in arenas such as policing, healthcare, and welfare administration. At a time when so many facets of state activity are being infiltrated by technology firms and their products, we ask how we should theorise the relationship between the capitalist state and technology capital? This paper develops one approach to answer this question by aligning the priorities of tech capital with those of the neoliberal state namely, through the disciplining and managing of the relative surplus population. In this arena, we argue, a form of techfare has begun to take shape: a technology-assisted extension and intensification of the disciplinary logics that work to lock the relative surplus population into exploitative market relations and punitive institutions in advanced capitalist countries like the United States. We explore techfare and the disciplining of labour through two avenues: the business of consumer finance vis-à-vis debt and credit instruments, and various forms of tech-enabled strategies of law-enforcement.
{"title":"The techfare state: debt, discipline, and accelerated neoliberalism","authors":"Alisha Bhagat, Rachel Phillips","doi":"10.1080/13563467.2022.2147494","DOIUrl":"https://doi.org/10.1080/13563467.2022.2147494","url":null,"abstract":"ABSTRACT\u0000 In this exploratory article, we aim to open a research agenda for renewed attention to the relationship between the capitalist state and the technology ecosystem. Over the last decade, private technology companies have increasingly become enmeshed with the activities of the state in arenas such as policing, healthcare, and welfare administration. At a time when so many facets of state activity are being infiltrated by technology firms and their products, we ask how we should theorise the relationship between the capitalist state and technology capital? This paper develops one approach to answer this question by aligning the priorities of tech capital with those of the neoliberal state namely, through the disciplining and managing of the relative surplus population. In this arena, we argue, a form of techfare has begun to take shape: a technology-assisted extension and intensification of the disciplinary logics that work to lock the relative surplus population into exploitative market relations and punitive institutions in advanced capitalist countries like the United States. We explore techfare and the disciplining of labour through two avenues: the business of consumer finance vis-à-vis debt and credit instruments, and various forms of tech-enabled strategies of law-enforcement.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"526 - 538"},"PeriodicalIF":4.2,"publicationDate":"2022-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43253202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-13DOI: 10.1080/13563467.2022.2141702
Engelbert Stockhammer, Andre Novas Otero
ABSTRACT Southern European countries are widely considered a distinct type of capitalism, but they have experienced a varied growth performance, both over time and across countries. This paper investigates the growth drivers in southern Europe since the mid-1990s. We consider a broad set of potential growth drivers derived from the literature on Mediterranean capitalism and Comparative Political Economy more broadly. On the demand side, these include the role of house prices (as the main financial variable; highlighted in parts of the growth models approach); the ‘financial curse’ hypothesis (which posits that financial inflows caused house price booms and crowded out manufacturing activities); and Keynesian arguments on the impact of fiscal policy. On the supply side, these encompass the cost competitiveness argument (consistent with mainstream economics and the Varieties of Capitalism approach), research-led technological change; and neo-structuralist arguments regarding the productive capacity. We find strong evidence for the growth contributions of house prices and fiscal policy. While these findings are generally supportive of extant analysis of these economies as finance-led rather than export-led, they call for a more serious integration of house prices in growth model analysis and for a more systematic analysis of the growth impact of fiscal policy.
{"title":"A tale of housing cycles and fiscal policy, not competitiveness. Growth drivers in Southern Europe","authors":"Engelbert Stockhammer, Andre Novas Otero","doi":"10.1080/13563467.2022.2141702","DOIUrl":"https://doi.org/10.1080/13563467.2022.2141702","url":null,"abstract":"ABSTRACT Southern European countries are widely considered a distinct type of capitalism, but they have experienced a varied growth performance, both over time and across countries. This paper investigates the growth drivers in southern Europe since the mid-1990s. We consider a broad set of potential growth drivers derived from the literature on Mediterranean capitalism and Comparative Political Economy more broadly. On the demand side, these include the role of house prices (as the main financial variable; highlighted in parts of the growth models approach); the ‘financial curse’ hypothesis (which posits that financial inflows caused house price booms and crowded out manufacturing activities); and Keynesian arguments on the impact of fiscal policy. On the supply side, these encompass the cost competitiveness argument (consistent with mainstream economics and the Varieties of Capitalism approach), research-led technological change; and neo-structuralist arguments regarding the productive capacity. We find strong evidence for the growth contributions of house prices and fiscal policy. While these findings are generally supportive of extant analysis of these economies as finance-led rather than export-led, they call for a more serious integration of house prices in growth model analysis and for a more systematic analysis of the growth impact of fiscal policy.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"483 - 505"},"PeriodicalIF":4.2,"publicationDate":"2022-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45532880","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-26DOI: 10.1080/13563467.2022.2138300
A. Brad, Jonas Hein
ABSTRACT The article explores the spatial dimension of the contested renegotiation of society-nature relations in the context of the oil palm boom in Indonesia. Drawing on qualitative research as well as on concepts of political ecology, materialist state theory and literature on the transnationalization and internationalisation of the state, it argues that conflicts in the context of the oil palm boom cannot merely be conceptualised as local negotiation processes for access to land, but are increasingly transnational in character. Particularly, transnational actors such as oil palm companies and environmental protection organisations as well as transnational regulatory systems such as private sustainability and carbon standards are increasingly relevant in structuring local conflicts. To illustrate how these transnational mechanisms of contestation and conflict resolution operate, the article's empirical focus lies on conflicts over land in the Indonesian province of Jambi on the island of Sumatra.
{"title":"Towards transnational agrarian conflicts? Global NGOs, transnational agrobusiness and local struggles for land on Sumatra","authors":"A. Brad, Jonas Hein","doi":"10.1080/13563467.2022.2138300","DOIUrl":"https://doi.org/10.1080/13563467.2022.2138300","url":null,"abstract":"ABSTRACT The article explores the spatial dimension of the contested renegotiation of society-nature relations in the context of the oil palm boom in Indonesia. Drawing on qualitative research as well as on concepts of political ecology, materialist state theory and literature on the transnationalization and internationalisation of the state, it argues that conflicts in the context of the oil palm boom cannot merely be conceptualised as local negotiation processes for access to land, but are increasingly transnational in character. Particularly, transnational actors such as oil palm companies and environmental protection organisations as well as transnational regulatory systems such as private sustainability and carbon standards are increasingly relevant in structuring local conflicts. To illustrate how these transnational mechanisms of contestation and conflict resolution operate, the article's empirical focus lies on conflicts over land in the Indonesian province of Jambi on the island of Sumatra.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"452 - 467"},"PeriodicalIF":4.2,"publicationDate":"2022-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42911277","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-18DOI: 10.1080/13563467.2022.2136149
Chiu-Wan Liu
ABSTRACT This study analyses the role of China’s private fintech business in Singapore’s emerging digital banking and payment sector by proposing a research framework that synthesises platform political economy, financial statecraft, and recentralisation. This research addresses the research puzzle of why the private fintech platforms have been granted an essential position in China’s plan to roll out the e-CNY as the party-state has intensified its regulatory and legal control over the private fintech sector. Drawing from the analysed documentary and interview data, this research demonstrates that Alibaba, Ant Group, and Tencent can be seen as a form of CCP financial statecraft to help achieve its foreign policy goals because they are established ‘fintech platforms’.
{"title":"Conceptualising private fintech platforms as financial statecraft and recentralisation in China","authors":"Chiu-Wan Liu","doi":"10.1080/13563467.2022.2136149","DOIUrl":"https://doi.org/10.1080/13563467.2022.2136149","url":null,"abstract":"ABSTRACT This study analyses the role of China’s private fintech business in Singapore’s emerging digital banking and payment sector by proposing a research framework that synthesises platform political economy, financial statecraft, and recentralisation. This research addresses the research puzzle of why the private fintech platforms have been granted an essential position in China’s plan to roll out the e-CNY as the party-state has intensified its regulatory and legal control over the private fintech sector. Drawing from the analysed documentary and interview data, this research demonstrates that Alibaba, Ant Group, and Tencent can be seen as a form of CCP financial statecraft to help achieve its foreign policy goals because they are established ‘fintech platforms’.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"433 - 451"},"PeriodicalIF":4.2,"publicationDate":"2022-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49595966","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-11DOI: 10.1080/13563467.2022.2130221
Carolina Alves
ABSTRACT This paper is a theoretical contribution to the development and update of Marx’s theory of money and credit, given the empirical developments in finance since the 1970s. It expands on the discussion of fictitious capital and government bonds within the Marxian literature. In contrast with most Marxian literature and some of Marx’s own writings on the topic, I argue that fictitious capital does not represent any real capital and then further develop the idea that fictitious capital is the channel through which the dominance of interest-bearing capital over other forms of capital occurs. This interpretation lays the foundation for understanding why government bonds, as titles of fictitious capital, are the keystone of financial markets and an unavoidable source for both financial accumulation and exploitation, rather than being a mere consequence of state spending. For this reason, public debt can neither be avoided nor fully paid off.
{"title":"Fictitious capital, the credit system, and the particular case of government bonds in Marx","authors":"Carolina Alves","doi":"10.1080/13563467.2022.2130221","DOIUrl":"https://doi.org/10.1080/13563467.2022.2130221","url":null,"abstract":"ABSTRACT This paper is a theoretical contribution to the development and update of Marx’s theory of money and credit, given the empirical developments in finance since the 1970s. It expands on the discussion of fictitious capital and government bonds within the Marxian literature. In contrast with most Marxian literature and some of Marx’s own writings on the topic, I argue that fictitious capital does not represent any real capital and then further develop the idea that fictitious capital is the channel through which the dominance of interest-bearing capital over other forms of capital occurs. This interpretation lays the foundation for understanding why government bonds, as titles of fictitious capital, are the keystone of financial markets and an unavoidable source for both financial accumulation and exploitation, rather than being a mere consequence of state spending. For this reason, public debt can neither be avoided nor fully paid off.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"398 - 415"},"PeriodicalIF":4.2,"publicationDate":"2022-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44135962","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-02DOI: 10.1080/13563467.2022.2130222
S. Maechler
ABSTRACT Accounting standard-setters including the International Financial Reporting Foundation have recently begun to revisit the relationship between accounting and sustainability to address issues of environmental economic transition. How has sustainability become an issue of interest to accounting standard-setters? And how do accounting standards intend to contribute to the environmental economic transition? Scholars of international political economy and cognate fields have devoted little attention to the study of international accounting standards, particularly in relations to sustainability. Drawing on a set of qualitative data and an interdisciplinary literature on finance and financialisation, this article first argues that accounting standard-setters’ interest in sustainability is the result of the incremental transformation of environmental issues into meaningful information for investors’ decision-making. Secondly, it shows that these standards and their development are based on the premise that the environmental economic transition depends on the provision of information that primarily meets the needs of investors, contrasting starkly with the original underpinnings of sustainability accounting. Overall, both the fact that financial accounting standard-setters are becoming involved in sustainability, and the way that they are addressing this issue, are further evidence of a financialisation of the environmental economic transition.
{"title":"Accounting for whom? The financialisation of the environmental economic transition","authors":"S. Maechler","doi":"10.1080/13563467.2022.2130222","DOIUrl":"https://doi.org/10.1080/13563467.2022.2130222","url":null,"abstract":"ABSTRACT Accounting standard-setters including the International Financial Reporting Foundation have recently begun to revisit the relationship between accounting and sustainability to address issues of environmental economic transition. How has sustainability become an issue of interest to accounting standard-setters? And how do accounting standards intend to contribute to the environmental economic transition? Scholars of international political economy and cognate fields have devoted little attention to the study of international accounting standards, particularly in relations to sustainability. Drawing on a set of qualitative data and an interdisciplinary literature on finance and financialisation, this article first argues that accounting standard-setters’ interest in sustainability is the result of the incremental transformation of environmental issues into meaningful information for investors’ decision-making. Secondly, it shows that these standards and their development are based on the premise that the environmental economic transition depends on the provision of information that primarily meets the needs of investors, contrasting starkly with the original underpinnings of sustainability accounting. Overall, both the fact that financial accounting standard-setters are becoming involved in sustainability, and the way that they are addressing this issue, are further evidence of a financialisation of the environmental economic transition.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"416 - 432"},"PeriodicalIF":4.2,"publicationDate":"2022-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41691155","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-25DOI: 10.1080/13563467.2022.2126447
M. Norris, Julie Lawson
ABSTRACT The extensive research on financialisation of housing and lively public and political debate on its negative implications for housing affordability have translated into surprisingly modest and fragmented policy responses. This reflects the power imbalance between the winners and losers from financialisation, but also the challenges inherent in taming financialisation due to its variegated, complex, and evolving nature and shortage of research on de-financialisation tools. To address this critical evidence gap, this article draws on the concept of financial circuits and comparative research on policy responses in the 56 United Nations Economic Commission for Europe member states. Comparing these policy responses with a four-part typology of the features of financial circuits which impact most on housing affordability reveals a pattern of uneven and inadequate action. Most governments have focused on controlling the scale of housing finance circuits, whereas limited action to control the number and cost of these circuits and practically no action to influence their focus has been taken. Some policy measures have reduced credit flows and thereby diminished house price growth, but their effectiveness has been undermined by countervailing policies and poor policy design, leading to inadequate targeting and implementation weaknesses.
{"title":"Tools to tame the financialisation of housing","authors":"M. Norris, Julie Lawson","doi":"10.1080/13563467.2022.2126447","DOIUrl":"https://doi.org/10.1080/13563467.2022.2126447","url":null,"abstract":"ABSTRACT The extensive research on financialisation of housing and lively public and political debate on its negative implications for housing affordability have translated into surprisingly modest and fragmented policy responses. This reflects the power imbalance between the winners and losers from financialisation, but also the challenges inherent in taming financialisation due to its variegated, complex, and evolving nature and shortage of research on de-financialisation tools. To address this critical evidence gap, this article draws on the concept of financial circuits and comparative research on policy responses in the 56 United Nations Economic Commission for Europe member states. Comparing these policy responses with a four-part typology of the features of financial circuits which impact most on housing affordability reveals a pattern of uneven and inadequate action. Most governments have focused on controlling the scale of housing finance circuits, whereas limited action to control the number and cost of these circuits and practically no action to influence their focus has been taken. Some policy measures have reduced credit flows and thereby diminished house price growth, but their effectiveness has been undermined by countervailing policies and poor policy design, leading to inadequate targeting and implementation weaknesses.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"363 - 379"},"PeriodicalIF":4.2,"publicationDate":"2022-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44405220","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-20DOI: 10.1080/13563467.2022.2126448
Alexis Montambault Trudelle
ABSTRACT While sovereign wealth funds (SWFs) are making significant incursions into global financial markets, various countries are increasingly establishing funds geared towards national development. Saudi Arabia’s Public Investment Fund (PIF) is the fastest-growing SWF, with most of its assets deployed domestically. Beyond restructuring the economy, deploying the PIF intrinsically implies balancing political and business interests. Yet, there has been little reflection on how socio-political relations with socioeconomic actors shape sovereign wealth allocation. Who gets access to SWF resources, and how? What kind of power relations are maintained or established in the process of SWF development? This article unpacks PIF activities to argue for a microfoundation of how domestic politics influence SWF decision-making. To do so, I introduce a sociology of SWFs using the tools of social network analysis. I find that the PIF mainly targets companies linked to family-owned conglomerates connected to merchant elites with long-standing personal connections to the Saudi state. This article contributes to rentier state debates and broader political economy scholarship by showing how beyond decision-making and asset allocation models, state investment funds also hinge on ancillary networks of social institutions, often generated from ingrained formal and informal interactions between states and society.
{"title":"Towards a sociology of state investment funds? sovereign wealth funds and state-business relations in Saudi Arabia","authors":"Alexis Montambault Trudelle","doi":"10.1080/13563467.2022.2126448","DOIUrl":"https://doi.org/10.1080/13563467.2022.2126448","url":null,"abstract":"ABSTRACT While sovereign wealth funds (SWFs) are making significant incursions into global financial markets, various countries are increasingly establishing funds geared towards national development. Saudi Arabia’s Public Investment Fund (PIF) is the fastest-growing SWF, with most of its assets deployed domestically. Beyond restructuring the economy, deploying the PIF intrinsically implies balancing political and business interests. Yet, there has been little reflection on how socio-political relations with socioeconomic actors shape sovereign wealth allocation. Who gets access to SWF resources, and how? What kind of power relations are maintained or established in the process of SWF development? This article unpacks PIF activities to argue for a microfoundation of how domestic politics influence SWF decision-making. To do so, I introduce a sociology of SWFs using the tools of social network analysis. I find that the PIF mainly targets companies linked to family-owned conglomerates connected to merchant elites with long-standing personal connections to the Saudi state. This article contributes to rentier state debates and broader political economy scholarship by showing how beyond decision-making and asset allocation models, state investment funds also hinge on ancillary networks of social institutions, often generated from ingrained formal and informal interactions between states and society.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"380 - 397"},"PeriodicalIF":4.2,"publicationDate":"2022-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46871803","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-11DOI: 10.1080/13563467.2022.2109610
Sebastian Diessner
ABSTRACT This article argues that policy-makers’ non-expert or ‘folk’ ideas can affect policy outcomes in a way that challenges the assumption of economic policy-making being guided by expert ideas emanating from the realm of economics and other sciences. To substantiate this argument, the article invokes literatures on audience costs as well as on economic folk theories to highlight the power of analogies and fallacies in the formulation of policy. While political economists have focused exclusively on the power of the ‘household analogy’ in the area of fiscal policy, much less is known about its monetary policy equivalent, which the article introduces as the ‘bank analogy’. Empirically, the analogy is assessed in the context of what is arguably a least likely case for the power of folk ideas to hold: the European Central Bank's governance of its balance sheet, the most powerful balance sheet in Europe.
{"title":"The power of folk ideas in economic policy and the central bank–commercial bank analogy","authors":"Sebastian Diessner","doi":"10.1080/13563467.2022.2109610","DOIUrl":"https://doi.org/10.1080/13563467.2022.2109610","url":null,"abstract":"ABSTRACT This article argues that policy-makers’ non-expert or ‘folk’ ideas can affect policy outcomes in a way that challenges the assumption of economic policy-making being guided by expert ideas emanating from the realm of economics and other sciences. To substantiate this argument, the article invokes literatures on audience costs as well as on economic folk theories to highlight the power of analogies and fallacies in the formulation of policy. While political economists have focused exclusively on the power of the ‘household analogy’ in the area of fiscal policy, much less is known about its monetary policy equivalent, which the article introduces as the ‘bank analogy’. Empirically, the analogy is assessed in the context of what is arguably a least likely case for the power of folk ideas to hold: the European Central Bank's governance of its balance sheet, the most powerful balance sheet in Europe.","PeriodicalId":51447,"journal":{"name":"New Political Economy","volume":"28 1","pages":"315 - 328"},"PeriodicalIF":4.2,"publicationDate":"2022-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45062725","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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