Political Economy Commons^™

Analyzing The Necessity And Feasibility Of The Freedom Dividend, Patrick Hodson

Theses/Capstones/Creative Projects

Job displacement stemming from automation has already taken away millions of jobs in the United States. Andrew Yang fears that future advancements could replace further jobs and exacerbate the wealth inequality already prevalent in our country. This has motivated his plan for change, the Freedom Dividend. This paper was designed to begin with an analysis of the motives for Yang’s plan. It then goes on to cover the details of his plan and assess the economic and administrative feasibility. The paper is concluded by looking at the potential outcomes of the plan and identifying major problem areas that need to …

Identity And The Self-Reinforcing Effects Of Norm Compliance, Mark A. Pickup, Erik O. Kimbrough, Eline A. Rooij

Economics Faculty Articles and Research

When making political and economic decisions (e.g., voting, donating money to a cause), individuals consider the expectations of groups with which they identify. These expectations are injunctive norms, shared beliefs about appropriate behavior for identity group members, and individuals' choices reflect trade‐offs between adherence to these norms and other preferences. We show that when those who identify moderately/strongly with the group pay a cost as a consequence of avoiding a norm violation, they subsequently view the norms as stronger than those that paid no cost. This is evident in their greater willingness to pay an additional cost to punish/reward other …

Morocco’S Makhzen And The Challenge Of National Development, Zakaria Fatih

Journal of Global Initiatives: Policy, Pedagogy, Perspective

This article explores the question of national development in Morocco considering the institution of the makhzen. It asserts that to adequately assess Morocco’s national development as a post-colonial country, it is necessary to rely on an economic model based in politics rather than in theories exclusively informed by classical and neoclassical economics. Among the key economists called upon to investigate the validity of politics in discussions of national development and income inequality are the following: Simon Kuznets, Thomas Piketty, W. A. Lewis, and the duo Daron Acemoglu and James A. Robinson, all of whom continue a long tradition of economic …

European Banking Union D: Cross-Border Resolution—Dexia Group, Rosalind Z. Wiggins, Natalia Tente, Andrew Metrick

Journal of Financial Crises

In September 2008, Dexia Group, SA, the world’s largest provider of public finance, experienced a sudden liquidity crisis. In response, the governments of Belgium, France, and Luxembourg provided the company a capital infusion and credit support. In February 2010, the company adopted a European Union (EU)-approved restructuring plan that required it to scale back its businesses and cease proprietary trading. In June 2011, Dexia withdrew from the government-sponsored credit support program before its expiration date, and in July, the company announced that it had passed an EU stress test. However, just three months later, Dexia wrote down its substantial position …

European Banking Union C: Cross-Border Resolution–Fortis Group, Rosalind Z. Wiggins, Natalia Tente, Andrew Metrick

Journal of Financial Crises

In August 2007, Fortis Group, Belgium’s largest bank, acquired the Dutch operations of ABN AMRO, becoming the fifth largest bank in Europe. Despite its size and its significant operations in the Benelux countries, Fortis struggled to integrate ABN AMRO. Fortis’s situation worsened with the crash of the US subprime market, which impacted its subprime mortgage portfolio. By July 2008, Fortis’s CEO had stepped down, its stock had lost 70% of its value, and it was on the verge of collapse due to a severe liquidity crisis. The governments of Belgium, Luxembourg, and the Netherlands quickly came together and agreed to …

European Banking Union B: The Single Resolution Mechanism, Rosalind Z. Wiggins, Michael Wedow, Andrew Metrick

Journal of Financial Crises

The options available to European governments to respond to a multinational bank in financial trouble have been severely limited since each country has its own unique laws and authority applicable to banks operating within its borders. The Bank Recovery & Resolution Directive (BRRD), which was adopted in 2013 and scheduled to go into effect January 2015, harmonizes rules across EU countries for how to restructure and resolve failing banks. However, the directive would maintain the existing system of individual national resolution authorities and resolution funds. To better secure the Eurozone banks and to compliment the Single Supervisory Mechanism, which was …

European Banking Union A: The Single Supervisory Mechanism, Rosalind Z. Wiggins, Michael Wedow, Andrew Metrick

Journal of Financial Crises

At the peak of the Global Financial Crisis in fall 2008, each of the 27 member states in the European Union (EU) set many of its own banking rules and had its own bank regulators and supervisors. The crisis made the shortcomings of this decentralized approach obvious, and since its formation in January 2011, the European Banking Authority (EBA) has been developing a “Single Rulebook” that will harmonize banking rules across the EU countries. In June 2012, European leaders went even further, committing to a banking union that would better coordinate supervision of banks in the then 18-country Eurozone. A …

European Central Bank Tools And Policy Actions B: Asset Purchase Programs, Chase P. Ross, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Beginning in August 2007, the European Central Bank (ECB) used standard and non-standard monetary policies as the global financial markets progressed from initial turmoil to a widespread sovereign debt crisis. This case describes the key features of the ECB’s asset purchase programs throughout the Global Financial Crisis and subsequent European sovereign debt crisis. These programs include the Covered Bond Purchase Programs (CBPP1, CBPP2, CBPP3), Securities Markets Program (SMP), Outright Monetary Transactions (OMT), Asset-backed Securities Purchase Program (ABSPP) and the Public Sector Purchase Program (PSPP).

In combating the crises, the ECB designed various innovative programs which it successively employed as the …

European Central Bank Tools And Policy Actions A: Open Market Operations, Collateral Expansion And Standing Facilities, Chase P. Ross, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Beginning in August 2007, the European Central Bank (ECB) responded to market turmoil with a variety of standard and non-standard monetary policy tools. This case discusses the operational framework of the ECB’s open market operation tools and standing facilities before and during the financial crisis. Specifically, this case describes the ECB’s use of its main refinancing and longer-term refinancing operations, the expansion of collateral eligible for use in Eurosystem credit operations, and the ECB’s standing facilities, including its marginal lending and deposit facilities.

Ireland And Iceland In Crisis D: Similarities And Differences, Arwin G. Zeissler, Daisuke Ikeda, Andrew Metrick

Journal of Financial Crises

On September 29, 2008—two weeks after the collapse of Lehman Brothers—the government of Ireland took the bold step of guaranteeing almost all liabilities of the country’s major banks. The total amount guaranteed by the government was more than double Ireland’s gross domestic product, but none of the banks were immediately nationalized. The Icelandic banking system also collapsed in 2008, just one week after the Irish government issued its comprehensive guarantee. In contrast to the Irish response, the Icelandic government did not guarantee all bank debt. Instead, the Icelandic government controversially split each of the three major banks into a new …

Ireland And Iceland In Crisis C: Iceland’S Landsbanki Icesave, Arwin G. Zeissler, Thomas Piontek, Andrew Metrick

Journal of Financial Crises

At year-end 2005, almost all of the total assets of Iceland’s banking system were concentrated in just three banks (Glitnir, Kaupthing, and Landsbanki). These banks were criticized by certain financial analysts in early 2006 for being overly dependent on wholesale funding, much of it short-term, that could easily disappear if creditors’ confidence in these banks faltered for any reason. Landsbanki, followed later by Kaupthing and then Glitnir, responded to this criticism and replaced part of their wholesale funding by using online accounts to gather deposits from individuals across Europe. In Landsbanki’s case, these new deposits were marketed under the name …

Ireland And Iceland In Crisis A: Increasing Risk In Ireland, Arwin G. Zeissler, Karen Braun-Munzinger, Andrew Metrick

Journal of Financial Crises

Ireland went from being the poorest member of the European Economic Community in 1973 to enjoying the second highest per-capita income among European countries by 2007. Healthy growth in the 1990s eventually gave way to a concentrated boom in property-related lending in the 2000s. The growth in the aggregate loan balances of Ireland’s six major banks greatly exceeded the growth in gross domestic product (GDP); as a result, bank loan balances grew from 1.1 times GDP in 2000 to over 2.0 times GDP by 2007. Given the small size of the domestic retail depositor base, the Irish banks increasingly funded …

Mutant Neoliberalism: Market Rule And Political Rupture [Table Of Contents], William Callison, Zachary Manfredi

Sociology

Tales of neoliberalism’s death are serially overstated. Following the financial crisis of 2008, neoliberalism was proclaimed a “zombie,” a disgraced ideology that staggered on like an undead monster. After the political ruptures of 2016, commentators were quick to announce “the end” of neoliberalism yet again, pointing to both the global rise of far-right forces and the reinvigoration of democratic socialist politics. But do new political forces sound neoliberalism’s death knell or will they instead catalyze new mutations in its dynamic development?

Mutant Neoliberalism brings together leading scholars of neoliberalism—political theorists, historians, philosophers, anthropologists and sociologists—to rethink transformations in market rule …

Behind Quality, There Is Equality: An Analysis Of Scientific Capital Accumulation In Social-Democratic Welfare Regimes, Olivier Bégin-Caouette

Comparative and International Education / Éducation Comparée et Internationale

ABSTRACT

Trade-offs between quality and equality are at the forefront of multiple debates in higher education, and one conceptual tool to approach societies’ adjustment in resolving these trade-offs is the welfare regime typology. Relying on the theory of academic capitalism and using research production as a proxy for quality in higher education, this study analyses how social-democratic welfare regimes resolve the trade-off between comparatively high levels of academic research production, access to higher education and equal citizens’ living conditions. Interviews with 56 system actors suggest that equality is perceived to contribute to academic freedom, public investments in research and the …

Perpetual Affordability Covenants: Can These Land Use Tools Solve The Affordable Housing Crisis?, Elizabeth Elia

Faculty Scholarship

Approximately 3.8 million privately-owned residential housing units in America today contain affordability covenants recorded in their chains of title. State and local agencies and the District of Columbia use these covenants to ensure that publicly-subsidized properties are actually used to provide affordable housing. With rents at all-time highs and stagnant wages, the affordable housing crisis has reached a fever pitch. House Democrats are proposing billions more in housing subsidy. To the extent those funds subsidize privately-owned housing development they, too, will be secured by affordability covenants. In response to this crisis, a new trend in high cost markets is to …

The Shifting Dynamics Of International Reserve Currencies, Robert J. Righi

Undergraduate Economic Review

With the recognition by the IMF of the Chinese renminbi as an international reserve currency in 2015, it is important to understand the modern influence of reserve currencies. We use currency exchange rate data and apply modified workhorse regression models to assign each country’s gross domestic product at purchasing power parity to a reserve currency bloc in order to obtain a global sphere of influence for each reserve currency. We find that the United States retains its dominance but faces challenges from the renminbi and the euro in recent years as the international monetary system becomes tri-polar.

Exiting The Fragility Trap : Rethinking Our Approach To The World’S Most Fragile States, David Carment, Yiagadeesen Samy

Ohio University Press Open Access Books

State fragility is a much-debated yet underinvestigated concept in the development and international security worlds. Based on years of research as part of the Country Indicators for Foreign Policy project at Carleton University, Exiting the Fragility Trap marks a major step toward remedying the lack of research into the so-called fragility trap. In examining the nature and dynamics of state transitions in fragile contexts, with a special emphasis on states that are trapped in fragility, David Carment and Yiagadeesen Samy ask three questions: Why do some states remain stuck in a fragility trap? What lessons can we learn from those …

Community Forest In Liberia: The Interface Between Sustainable Charcoal Production And Deforestation, Amavie Clement

Capstone Collection

The available data establishes a direct correlation between charcoal production and forest degradation and deforestation in Liberia. Charcoal is the primary energy source for Liberians, especially in urban areas where the bulk of the population lives. It is expected to be the mainstay energy source for years to come because it is affordable, accessible, and convenient to use compared to other forms of energy (i.e. electricity and petroleum gas). However, the current model of charcoal production, based on indiscriminate felling of trees, poses a danger to the environment as it results in widespread forest degradation and deforestation. Therefore, any successful …

Introduction To The Special Issue On The Blue Economy Of Bangladesh, Pawan G. Patil, Pierre Failler, Khurshed Alam

Journal of Ocean and Coastal Economics

Introduction to the Special Edition on the Blue Economy of Bangladesh by the Editors of the Special Edition.

Human Rights And Economic Democracy: Reinvigorating The Human Rights Movement, Curtis T. Kline

Biennial Conference: The Social Practice of Human Rights

A 2018 report from the Intergovernmental Panel on Climate Change (IPCC) concluded that in order to avoid a seemingly inevitable ecological collapse that would bring intense suffering especially on the most marginalized and excluded sectors; the world needs to develop “rapid, far-reaching and unprecedented changes in all aspects of society”. There are many local experiences which demonstrate the possibilities of achieving these needed changes. There are a number of community organizations and associations, social movements, and municipal efforts, among others, with creative visions on this front. In Jackson, Mississippi, for example, Cooperation Jackson strives to be a means …