Bailout Research Papers - Academia.edu (original) (raw)

With the recent development of the Occupy Movement, public criticism of neoliberalism has climaxed since the onset of a global financial crisis in late 2008. The mobilization of protesters in cities throughout the world was preceded by... more

With the recent development of the Occupy Movement, public criticism of neoliberalism has climaxed since the onset of a global financial crisis in late 2008. The mobilization of protesters in cities throughout the world was preceded by much speculation in the media and blogosphere over the past few years, where commentators have been quick to suggest that the end of neoliberalism is upon us. The validity of postneoliberalism, however, remains tenuous, as its advocates continue to treat neoliberalism as a monolithic, static, and undifferentiated end-state. Despite the desire to move beyond neoliberal strictures, there is an undeniable continuity to neoliberalism that must be appreciated if we ever hope to leave this unforgiving version of capitalism truly in the past.

Governments are often punished for negative events such as economic downturns and financial shocks. However, governments can address such shocks with salient policy responses that might mitigate public punishment. We use three... more

Governments are often punished for negative events such as economic downturns and financial shocks. However, governments can address such shocks with salient policy responses that might mitigate public punishment. We use three high-quality nationally representative surveys collected around a key event in the history of the Dutch economy, namely the outbreak of the financial crisis in 2008, to examine how voters responded to a salient government bailout. The results illustrate that governments can get substantial credit for pursuing a bailout in the midst of a financial crisis. Future research should take salient policy responses into account to fully understand the public response to the outbreak of financial and economic crises.

This paper argues for a reappraisal of extant scholarship on delegation in the domain of financial regulation. Through an examination of Japan's experience with financial regulation between 1992 and 2003, it is demonstrated that... more

This paper argues for a reappraisal of extant scholarship on delegation in the domain of financial regulation. Through an examination of Japan's experience with financial regulation between 1992 and 2003, it is demonstrated that crisis-induced institutional development entails a shift toward a more flexible, trustee-type bureaucratic structure. While the logic presented in this paper is far from a universally applicable theory of institutional change, it calls into question the relevance of more conventional approaches to the origins of delegation of authority, notably the approach that uses unified and divided government as a key variable. A renewed emphasis on the role of extra-political sources of transfers of authority inside the executive, and also between the legislature and the executive, therefore, is in order.

The international bailout granted to Portugal between 2011 and 2014 was conditional on the adoption by the Portuguese State of austerity measures included in a memorandum of understanding (MoU) signed by the European Commission on behalf... more

The international bailout granted to Portugal between 2011 and 2014 was conditional on the adoption by the Portuguese State of austerity measures included in a memorandum of understanding (MoU) signed by the European Commission on behalf of the European Union (EU) and the Member States. The MoU was never published in an official journal or even translated into the Portuguese language. Its implementation caused a significant decrease in the level of protection of social rights.
The compatibility of the MoU with core principles of the rule of law and with the EU´s social Constitution was never tested in court. A systemic failure in the jurisdictional system of the EU immunized the MoU to any judicial challenge. At the apex of the system, the Court of Justice of the EU declined to answer preliminary references submitted by Portuguese lower courts that questioned the compatibility with the Charter of Fundamental Rights of the EU of national budgetary measures that implemented the MoU. At the bottom, Portuguese courts either failed to properly identify the EU law acts that were the source of national austerity measures or disregarded their role as common EU law courts of ordinary jurisdiction when they bypassed the opportunity to refer a question for a preliminary ruling of the Court of Justice challenging the validity of the MoU.

In "The long shadow of the state: financializing the Chinese city" Fulong Wu reflects on the role of the state in financialization processes. The language of symbiosis, with key concepts such as mutualism, parasitism and commensalism, but... more

In "The long shadow of the state: financializing the Chinese city" Fulong Wu reflects on the role of the state in financialization processes. The language of symbiosis, with key concepts such as mutualism, parasitism and commensalism, but also cleaning symbiosis, metabiosis, co-evolution, mutation and mimicry could help us to conceptualize state/finance relationships. Finance and the state have co-evolved and continue to do so. The role of the state in financialization processes often appears to be contradictory. Parasitism by finance may have already limited the state's capacity to respond to urban financialization. In a seemingly commensal relationship, the state may also be facilitating finance. In fact, such patterns may be indicative of a more mutualistic imperative in which the state tries to further its own interests through finance rather than at the expense of finance-it is here that Wu provides most evidence for the Chinese case. In other words, the state creates the conditions for the financialization of the city and by doing so it brings the characteristics of finance inside the state. In the process, the state mimics finance in order to extend state power and mutatesas a result of the specific co-evolution with finance.
KEYWORDS: Financialization; the state; symbiosis; co-evolution; mutation

In this paper we study the financial repercussions of the destruction of two fully armed and operational moon-sized battle stations ("Death Stars") in a 4-year period and the dissolution of the galactic government in Star Wars. The... more

In this paper we study the financial repercussions of the destruction of two fully armed and operational moon-sized battle stations ("Death Stars") in a 4-year period and the dissolution of the galactic government in Star Wars. The emphasis of this work is to calibrate and simulate a model of the banking and financial systems within the galaxy. Along these lines, we measure the level of systemic risk that may have been generated by the death of Emperor Palpatine and the destruction of the second Death Star. We conclude by finding the economic resources the Rebel Alliance would need to have in reserve in order to prevent a financial crisis from gripping the galaxy through an optimally allocated banking bailout.

Este artigo elucida, inicialmente, quais os principais instrumentos institucionais e políticos que estabelecem as condições que geram o ciclo vicioso de irresponsabilidade fiscal dos entes subnacionais e subsequentes resgates por parte do... more

Este artigo elucida, inicialmente, quais os principais instrumentos institucionais e políticos que estabelecem as condições que geram o ciclo vicioso de irresponsabilidade fiscal dos entes subnacionais e subsequentes resgates por parte do ente central, através do ‘jogo do resgate’. Na sequência, essa matriz teórica será confrontada com o desenho federalista proposto pela Constituição de 1988 e as alterações legislativas promovidas posteriormente pela Lei de Responsabilidade Fiscal, como forma de correção da perversa matriz de incentivos estabelecida. Além disso, expõe-se as razões do fracasso de referida reestruturação, mediante a inserção de um novo jogador, o Supremo Tribunal Federal, na estrutura do jogo.

The Cabinet Committee on Economic Affairs of India decided to privatize the debt-ridden Air India. The airline was under debt-trap since the merger of Air-India and Indian Airlines in 2007. AI was surviving on the bailout package. Just... more

The Cabinet Committee on Economic Affairs of India decided to privatize the debt-ridden Air India. The airline was under debt-trap since the merger of Air-India and Indian Airlines in 2007. AI was surviving on the bailout package. Just before the CCEA decided to privatize AI, there was a series of newspaper editorials on AI, and most recommended its privatization. This paper aimed to compile the opinions of experts and economists. As privatization is not the solution for all ills, this paper argues to give a chance to the recovering AI for turnaround and to compete as a public enterprise.

This paper critically assesses the racialized hierarchies underpinning European responses to debt and financial crises. I begin by exploring the social and cultural identities that underpin contemporary understandings of capitalism and... more

This paper critically assesses the racialized hierarchies underpinning European responses to debt and financial crises. I begin by exploring the social and cultural identities that underpin contemporary understandings of capitalism and economic decision-making. I argue that the coherence of European capitalism reflects a Lacanian sense of fantasy that denies the racialized hierarchies that frame European responses to the crisis. Specifically, belief in capital and the European project was employed by the European Central Bank (ECB) and the Court of Justice of the European Union (CJEU) to justify imposing market discipline and responsibility on new European members through extra-legal decision-making. Technocratic responses to crisis deploy a supposed necessity and objectivity to bypass democratic, legal and constitutional limits, but rest on a vision of capitalism that denies the subjective and fantastic nature of this authority. As these 'policies of faith' are propagated via European debt and restructuring it is necessary to expose the cultural and political assumptions about capital, capitalism and expertise that underpin these policies.

The recent global financial catastrophe has raised questions about the relationship between corporate governance and the crisis. Many scholars attribute the crisis to the corporate failure and the Anglo-Saxon model of capitalism. Much of... more

The recent global financial catastrophe has raised questions about the relationship between corporate governance and the crisis. Many scholars attribute the crisis to the corporate failure and the Anglo-Saxon model of capitalism. Much of the literatures, however, tend to focus on examining the issue of financial crisis in the developed economy. Following up this line of literatures, this paper will extend the discussion of the role of corporate governance in financial crisis in the developing world. Using Indonesia as a case study, this paper will look at evidence that has emerged from the recent financial crisis regarding the failures of corporate governance in addressing and preventing the crisis.

The economic and financial history of Greece offers interesting insights into the current worldwide economic crisis. In the nineteenth, twentieth and twenty-first centuries, Greece went through a series of financial disasters due to... more

The economic and financial history of Greece offers interesting insights into the current worldwide economic crisis. In the nineteenth, twentieth and twenty-first centuries, Greece went through a series of financial disasters due to external factors and to policies that failed to take fiscal stability into account, insofar as they relied heavily on foreign loans. These, in many cases, led to real bankruptcies. This article compares the attempted bailout by a British bank in 1893 with the salvage operation of 2010 that avoided the technical bankruptcy of Greece. Although the outcomes differed, owing to sharply different geopolitical and geo-economic contexts and to the amount of money committed to these financial operations, in both cases Greece relied on Europe to avoid impending financial disaster.