The faces of liberal capitalism: Anglo-saxon banking systems in crisis?

Cambridge Journal of Economics

Volumn 36, Issue 2, 2012, Pages 495-524

  Konzelmann, Sue ^a   Fovargue Davies, Marc ^b   Schnyder, Gerhard ^c  

^a UNIVERSITY OF LONDON   (United Kingdom)

^b LCCGE   (United Kingdom)

^c KING'S COLLEGE LONDON   (United Kingdom)

Author keywords

Corporate governance; Financial market instability; Regulation; Varieties of capitalism

Indexed keywords

BANKING; CAPITALISM; CORPORATE STRATEGY; FINANCIAL CRISIS; FINANCIAL MARKET; FINANCIAL SYSTEM; GOVERNANCE APPROACH;

EID: 84857931065     PISSN: 0309166X     EISSN: 14643545     Source Type: Journal    
DOI: 10.1093/cje/ber049     Document Type: Article

References (91)

1. Argy, F. 2001. Liberalism and economic policy, pp. 67-85, in Nieuwenhuysen, J., Lloyd, P. and Mead, M. (eds), Reshaping Australia's Economy: Growth with Equity and Sustainability, Cambridge, Cambridge University Press
2. Australian Securitization Forum. 2008. The Australian Mortgage-Backed Securities Market: Is an Enhanced Model Needed to Lower Mortgage Rates? Sydney, ASF
3. Bain, E. and Harper, I. 2000. Integration of financial services: evidence from Australia, North American Actuarial Journal, vol. 4, no. 3, 1-19
4. Berg, C. 2008. Regulation and the regulatory burden, Quadrant, 5 June, http://www.ipa.org.au/news/1630/regulation-and-the-regulatory-burden/category/1 [date last accessed 7 January 2012]
5. Bluestone, B. and Harrison, B. 1982. The Deindustrialization of America: Plant Closings, Community Abandonment and the Dismantling of Basic Industry, New York, Basic Books
6. Blyth, M. 2002. Great Transformations. Economic Ideas and Institutional Change in the Twentieth Century, Cambridge, UK, Cambridge University Press
7. Bordo, M., MacDonald, R. and Oliver, M. 2009. 'Sterling in Crisis: 1964-69', National Bureau of Economic Research Working Paper no. 14657
8. Boskin, M. 1988. Reagan and the Economy: The Successes, Failures and Unfinished Agenda, San Francisco, International Center for Economic Growth
9. Boyer, R. 2000. Is a finance-led growth regime a viable alternative to Fordism? A preliminary analysis, Economy and Society, vol. 29, no. 1, 111-45
10. Braithwaite, J. 2008. Regulatory Capitalism. How it Works, Ideas for Making it Work Better, Cheltenham, Edward Elgar
11. Brean, D., Kryzanowski, L. and Roberts, G. 2011. Canada and the United States: different roots, different routes to financial sector regulation, Business History, vol. 53, no. 2, 249-69
12. Busch, A. 2009. Banking Regulation and Globalization, Oxford, Oxford University Press
13. CBC News. 2010. Flaherty Tightens Mortgage Taps, 16 February, http://www.cbc.ca/money/story/2010/02/16/mortgage-flaherty.html [date last accessed 7 January 2012]
14. Chossudovsky, M. 2009. Canada's 75 Billion Dollar Bank Bailout, 25 January, www. globalresearch.ca
15. Clark, P. 1979. 'Issues in the Analysis of Capital Formation and Productivity Growth', Brookings Papers on Economic Activity no. http://www.brookings.edu/,/media/Files/Programs/ES/BPEA/1979_2_bpea_papers/1979b_bpea_clark.pdf [date last accessed 7 January 2012]
16. Clarke, T. 1997. Silent Coup: Confronting the Big Business Takeover of Canada, Ottawa, CCPA
17. Clarke, T. 2007. International Corporate Governance. AComparative Approach, Oxford, Routledge
18. Competition Bureau Canada. 1998. Backgrounder: The Competition Bureau and Bank Mergers, 11 December, http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/00825.html [date last accessed 7 January 2012]
19. Courchene, T. and Purvis, D. 1992. 'Productivity Growth and Canada's International Competitiveness', Bell Canada Papers on Economic and Public Policy, John Deutsch Institute for the Study of Economic Policy, Vol. 1.
20. Curry, T. and Shibut, L. 2000. Cost of the S&L crisis, FDIC Banking Review, vol. 2, no. 2, http://www.fdic.gov/bank/analytical/banking/2000dec/brv13n2_2.pdf [date last accessed 7 January 2012]
21. Department of Industry. 1997. Merger Enforcement Guidelines as Applied to a Bank Merger: Submission of the Director of Investigation and Research to the Competition Bureau of the Task Force on the Future of the Canadian Financial Services Sector, Ottawa ON, Supply and Services Canada
22. Dignam, A. and Galanis, M. 2004. Australia inside out: the corporate governance system of the Australian listed market, Melbourne University Law Review, vol. 28, http://cclsr.law.unimelb.edu.au/research-papers/Aust.Corp.Gov.System%20of%20Aust.list.Mark.pdf [date last accessed 7 January 2012]
23. Enoch, S. 2007. Changing the ideological fabric? A brief history of (Canadian) neoliberalism, State of Nature: An Online Journal of Radical Ideas, Autumn, http://www.stateofnature.org/changingTheIdeological.html [date last accessed 7 January 2012]
24. Fama, E. 1970. Efficient capital markets: a review of theory and empirical work, Journal of Finance, vol. 25, 383-417
25. Ferguson, N. 2002. The Ascent of Money: A Financial History of the World, London, Allen Lane
26. Ferguson, N. 2010. High Financier: The Lives and Time of Siegmund Warburg, London, Reed Elsevier
27. Financial Services Authority. 2009. The Turner Review. A Regulatory Response to the Global Banking Crisis, London, Financial Services Authority
28. Financial Times. 2009. The fearsome become the fallen, Financial Times, 23 March, p. 9
29. Friedman, M. 1962. Capitalism and Freedom, Chicago, University of Chicago Press
30. Friedman, M. 1977. 'Unemployment and Inflation', Institute of Economic Affairs Occasional Paper no. 51
31. Friedman, M. and Friedman, R. 1984. Tyranny of the Status Quo, San Diego, Harcourt Brace Jovanovich
32. Galbraith, J. K. 1999. The Affluent Society, London, Penguin Books
33. Gamble, A. 1996. Hayek. The Iron Cage of Liberty, Boulder, Westview Press
34. Gardner, R. 1980. Sterling-Dollar Diplomacy in Current Perspective: The Origins and the Prospects of our International Economic Order, New York, Columbia University Press
35. Gilbert, G. A. 1986. Requiem for Regulation Q: What it Did and Why it Passed Away, St Louis, Federal Reserve Bank of St Louis, http://research.stlouisfed.org/publications/review/86/02/Requiem_Feb1986.pdf [date last accessed 7 January 2012]
36. Goodhart, C. 2004. The Bank of England: 1970-2000, in Michie, R. and Williamson, P. (eds), The British Government and the City of London in the Twentieth Century, Cambridge, UK, Cambridge University Press
37. Gordon, J. 2004. An Empire of Wealth: The Epic History of American Economic Power, New York, Harper Collins
38. Hall, P. 1993. Policy paradigms, social learning and the state: the case of economic policymaking in Britain, Comparative Politics, vol. 25, no. 3, 275-96
39. Hall, P. and Soskice, D. 2001. An introduction to varieties of capitalism, in Hall, P. and Soskice, D. (eds), Varieties of Capitalism. The Institutional Foundations of Comparative Advantage, Oxford, Oxford University Press
40. Harris, S. 2004. Financial sector reform in Canada: interests and the policy process, Canadian Journal of Political Science, vol. 37, no. 1, 161-84
41. Heinrich, E. 2009. What Obama can learn from Canada on bank bailouts, Time Magazine, 19 February
42. Helleiner, E. 1994. States and the Reemergence of Global Finance, Ithaca, Cornell University Press
43. Höpner, M., Petring, A., Seikel, D. and Werner, B. 2009. 'Liberalisierungspolitik. Eine Bestandsaufnahme von zweieinhalb Dekaden marktschaffender Politik in entwickelten Industrieländern', MPIfG Discussion Paper no. 09/7, 1-45
44. International Monetary Fund (IMF). 2008.World economic outlook: Housing and the business cycle, New York, IMF http://www.imf.org/external/pubs/ft/weo/2008/01/pdf/text.pdf [date last accessed 7 January 2012]
45. Johnson, C. 1991. The Economy under Mrs. Thatcher, London, Penguin Books
46. Keen, S. 2009. Household debt: the final stage in an artificially extended ponzi bubble, Australian Economic Review, vol. 42, no. 3, 347-57
47. Konzelmann, S., Wilkinson, F., Fovargue-Davies, M. and Sankey, D. 2010. Governance, regulation and financial market instability: the implications for policy and reform, Cambridge Journal of Economics, vol. 34, no. 5, 929-54
48. Krippner, G. 2011. Capitalizing on Crisis: The Political Origins of the Rise of Finance, London, Harvard University Press
49. Kryzanowski, L. and Ursel, N. 1993. Market reactions to announcements of legislative changes and Canadian bank takeovers of Canadian investment dealers, Journal of Financial Services Research, vol. 7, 171-85
50. Laker, J. 2004. The Australian Banking System: Building on Strength, Keynote Speech to the 2005 Business Banking Conference, Sydney, 10 November, http://apra.gov.au/Speeches/Documents/Business-Banking-2005-Conference.pdf [date last accessed 7 January 2012]
51. La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. 1997. Legal determinants of external finance, The Journal of Finance, vol. 52, 1131-50
52. Larson, M., Schnyder, G., Westerhuis, G. and Wilson, J. 2011. Strategic responses to global challenges: the case of European banking, 1973-2000, Business History, vol. 53, no. 1, 40-62
53. Lazonick, W. and O'Sullivan, M. 2000. Maximizing shareholder value: a new ideology for corporate governance, Economy and Society, vol. 29, 13-35
54. Leonnig, C. 2008.HowHUDmortgage policy fed the crisis, Washington Post, 10 June, A01, http://www.washingtonpost.com/wp-dyn/content/article/2008/06/09/AR2008060902626.html [date last accessed 7 January 2012]
55. Lott, S. 2005. Bank Mergers and the Public Interest, Ottawa, Public Interest Advocacy Centre
56. MacFarlane, I. 2006. The real reasons why it was the 1990s recession we had to have, The Age, 2 December, http://www.theage.com.au/news/business/the-real-reasons-why-it-was-the-1990srecession-we-had-to-have/2006/12/01/1164777791623.html# [date last accessed 7 January 2012]
57. Maiden, M. 2008. Westpac-St George merger won't topple four-pillars, The Age, 15 May
58. Marglin, S. and Schor, J. 2007. The Golden Age of Capitalism: Re-interpreting the Post-war Experience, Oxford, Clarendon Press
59. Meade, J. 1982. Wage Fixing, London, Allen and Unwin
60. Morck, R. K., Strangeland, D. and Yeung, B. 1998. 'Inherited Wealth, Corporate Control and Economic Growth: The Canadian Disease?', NBER Working Paper no. http://www. bschool.nus.edu.sg/Departments/BussPolicy/BY%20papers/inherited%20wealth,%20corporate%20control%20and%20economic%20growth.pdf [date last accessed 7 January 2012]
61. Norrie, K. and Owram, D. 1991. A History of the Canadian Economy, Toronto, Harcourt Brace Javonovich
62. Nieuwenhuysen, J., Lloyd, P. and Mead, M. 2001. Reshaping Australia's Economy: Growth with Equity and Sustainability, Cambridge, UK, Cambridge University Press
63. OECD. 2009. Factbook, OECD, Paris, www.oecd.org/publications/factbook [date last accessed 7 January 2012]
64. Office of the Deputy Prime Minister (ODPM). 2003. The mortgage-backed securities market in the UK: Overview and prospects. Housing Research Summary 2001. http://www.communities.gov.uk/documents/housing/pdf/14684.pdf [date last accessed 7 January 2012]
65. Office for National Statistics. 2010. Housing in England, 2007/8, http://www.communities.gov.uk/publications/corporate/statistics/housingengland200708 [date last accessed 7 January 2012]
66. Pan, E. 2011. Structural reform of financial regulation in Canada, Transnational Law and Contemporary Problems, vol. 19, 796-867
67. Patience, A. and Head, B. 1979. From Whitlam to Fraser: Reform and Reaction in Australian Politics, Melbourne, Oxford University Press
68. Peck, J. 2010. Constructions of Neoliberal Reason, Oxford, Oxford University Press
69. Perry, G. and Tobin, J. (eds) 2000. Economic Events, Ideas and Policies: The 1960s and After, Washington, DC, The Brookings Institution
70. Quiggin, J. 1997. Economic Rationalism, Crossings, vol. 2, no. 1, 3-12, http://www.uq.edu.au/economics/johnquiggin/JournalArticles97/Econrat97.html [date last accessed 7 January 2012]
71. Quiggin, J. 1998. Social democracy and market reform in Australia and New Zealand, Oxford Review of Public Policy, vol. 14, no. 9, 79-109
72. Rao, P. and Lee-Sing, C. R. 1995. Governance structure, corporate decision-making and firm performance in North America, in Daniels, R. J. and Morck, R. (eds), Corporate Decision-Making in Canada, vol. 5, Alberta, University of Calgary Press
73. Reid, M. 1988. All Change in the City: The Revolution in Britain's Financial Sector, London, Macmillan
74. Reinhart, C. and Rogoff, K. 2009. This Time is Different. Eight Centuries of Financial Folly, Princeton, Princeton University Press
75. Richardson, G. 2007. The collapse of the US banking system during the Great Depression, 1929 to 1933: new archival evidence, Australasian Accounting, Business and Finance Journal, vol. 1, no. 1, 39-50
76. Schenk, C. 2004. The new City and the state in the 1960s, in Michie, R. and Williamson, P. (eds), The British Government and the City of London in the Twentieth Century, Cambridge, UK, Cambridge University Press
77. Secor. 2008. Positioning Canadian Firms in the Global Market for Corporate Control, Toronto, Secor Consulting, http://www.secorgroup.com/files/pdf/SECOR_final_report_on_Canada_s_MA_competitiveness.pdf [date last accessed 7 January 2012]
78. Seidman, L. W. 1997. History of the Eighties: Lessons for the Future, Federal Deposit Insurance Corporation, http://www.fdic.gov/bank/historical/history/contents.html [date last accessed 7 January 2012]
79. Sherman, M. 2009. A Short History of Financial Deregulation in the US, Washington, DC, Centre for Economic and Policy Research, http://www.openthegovernment.org/sites/default/files/otg/dereg-timeline-2009-07.pdf [date last accessed 7 January 2012]
80. Skidelsky, R. 1990. Thatcherism, Oxford, Blackwell Publishers
81. Smith, D. 2006. The Chicago boy who gave monetarism to the world, The Sunday Times, 19 November
82. Stapledon, N. 1998. Housing and the global financial crisis: US versus Australia, Economic and Labor Relations Review, vol. 19, no. 2, 1-16
83. Stewart, H. 2009. IMF: fifth of Britain's GDP spent so far on bank bailouts, The Guardian, 6 March, http://www.guardian.co.uk/business/2009/mar/06/imf-uk-bailout-gdp [date last accessed 7 January 2012]
84. Swank, D., Martin, C. and Thelen, K. 2008. Institutional Change and the Politics of Social Solidarity in Advanced Capitalism Democracies, paper presented at the semi-annual meeting of the Council for European Studies, Chicago, http://www.yale.edu/leitner/resources/papers/SMT_ICPSS_Oct08.pdf [date last accessed 7 January 2012]
85. Sykes, T. 1995. The Bold Riders: Behind Australia's Corporate Collapses, Sydney, Allen and Unwin
86. Tett, G. 2009. Fool's Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a Catastrophe, London, Little Brown
87. Time Magazine. 1965. We are all Keynesians now, Time Magazine, 31 December, http://www.time.com/time/magazine/article/0,9171,842353,00.html [date last accessed 7 January 2012]
88. US Census Bureau. 2004. Historical Census of Housing Tables: Home Ownership Housing and Household Economic Statistics Division, http://www.census.gov/hhes/www/housing/census/historic/owner.html [date last accessed 7 January 2012]
89. US Census Bureau. 2010. Housing Vacancy and Home Ownership Housing and Household Economic Statistics Division, http://www.census.gov/hhes/www/housing/hvs/historic/index.html [date last accessed 7 January 2012]
90. Vorms, B. 2009. After the Crisis: What Kind of Home Ownership Policies? ENHR Conference, Prague, http://www.anil.org/fileadmin/ANIL/Etudes/2009/ownership_policies.pdf [date last accessed 10 January 2012]
91. Williams, P. and Pannell, B. 2007. Home ownership at the cross-roads? Housing and Finance, no. 2, 1-14