The Global Crisis and the Governance of Power in Finance

Gary A. Dymski

研究成果: Article

抄録

This article examines why the global financial crisis that began in 2007 has intensified
policy debate about financial regulation and governance, and brought about the end of polite
discourse in economics. Coming into the crisis, the received view on financial regulation regarded
power in finance as a matter of market concentration alone, and understood concentration
as stabilizing and an indication that competitively fit firms were dominating the market. This
article argues that the current crisis necessitates a reframing of our understanding regarding the
governance—not simply regulation—of finance. At the core of this reframing must be a much
richer, multi-dimensional conception of power and its implications in financial systems. This article
argues that the locus of power in finance has shifted with the rise of the “originate-and-distribute”
model in the 2000s. This shift created new possibilities for rent-extraction and speculation, to
which the existing model of regulation was not prepared to react. The subprime crisis emerged
precisely, in the view developed here, in the context of this crisis in the governance of power in
finance. So restoring effective financial regulation will require a deep rethinking of what finance
has become, and what it should be. The challenge is profound, for resolving the nearly global crisis
of financial systems—and, by extension, of macroeconomic stagnation—depends on recognizing
and responding to the considerable, multi-dimensional power accumulated by the very financial
firms whose dysfunctionality helped create that crisis in the first place.
元の言語English
ページ(範囲)581-602
ページ数22
ジャーナルWorld Review of Political Economy
2
発行部数2
出版物ステータスPublished - 2011
外部発表Yes

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finance
governance
regulation
financial system
market
speculation
rent
financial crisis
macroeconomics
functionality
indication
firm
economics

これを引用

The Global Crisis and the Governance of Power in Finance. / Dymski, Gary A.

:: World Review of Political Economy, 巻 2, 番号 2, 2011, p. 581-602.

研究成果: Article

Dymski, Gary A. / The Global Crisis and the Governance of Power in Finance. :: World Review of Political Economy. 2011 ; 巻 2, 番号 2. pp. 581-602.
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