Economics 1021A/B Study Guide - Quiz Guide: Systemic Risk, Welfare Capitalism, Capital Market

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: bruce hammond

Document Summary

Interest group politics: political settlements across countries, power holders have power of how capital can be channelled and moved around an economy. States, big banks, financial firms and labour have varying powers: compare us and germany/canada. Political settlements can vary across time: us new deal (focused on big banks) to neo-liberalism (financial firms) . All national political settlements have a corresponding national financial system with different models: capital market based, credit based (state, credit based (banks) Firms now enmeshed in global networks of finance: development of institutional/portfolio investors, pension funds of singapore/california, have a lot of power: international equity, bond markets as trojan horses. Reliance on finance capital, with welfare state. Housing, higher education, social protection, healthcare privatized, people take on debt to pay these things and become financialized. Employment and pensions generate massive profit to financiers and takes a huge risk for normal people. Social policies are designed to improve wellbeing.