Great Expectations, Financialization, and Bank Bailouts in Democracies.

Accelerating financialization and rising societal wealth have meant that democratic governments increasingly provide bailouts following banking crises. Using a new long-run data set, we show that despite frequent and virulent crises before World War II, bank bailouts to protect wealth were then exce...

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Publicado en:Comparative Political Studies Vol. 53; no. 8; pp. 1259 - 1298
Autores principales: Chwieroth, Jeffrey M., Walter, Andrew
Formato: Artículo
Publicado: Sage Publications Inc. Jul2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Great Expectations, Financialization, and Bank Bailouts in Democracies.
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        au:
          Chwieroth, Jeffrey M.
          Walter, Andrew
        affil:
          London School of Economics, UK
          The University of Melbourne, Victoria, Australia
      su:
        Financial bailouts
        Financialization
        World War II
        Sequential pattern mining
      sug:
        subj:
          Financial bailouts
          Financialization
          World War II
          Sequential pattern mining
      keyword:
        economic policy
        globalization
        political economy
        economic policy
        globalization
        political economy
      ab: Accelerating financialization and rising societal wealth have meant that democratic governments increasingly provide bailouts following banking crises. Using a new long-run data set, we show that despite frequent and virulent crises before World War II, bank bailouts to protect wealth were then exceptionally rare. In recent decades, by contrast, governments have increasingly opted for extensive bailouts—well before the major interventions of 2007–2009. We argue that this policy shift is the consequence of the "great expectations" of middle-class voters overlooked in existing accounts. Associated with the growing financialization of wealth, rising leverage, and accumulating ex ante financial stabilization commitments by governments, these expectations are suggestive of substantially altered policy preferences and political cleavages. Since the 1970s, when severe banking crises returned as an important threat to middle-class wealth, this "pressure from below" has led elected governments to provide increasingly costly bailouts with no historical precedent.
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    language: English
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