The Dynamics of Policy Innovation and Paradigmatic Change
Edited by Hideko Magara
Chapter 11: A political analysis of the global financial crisis: implications for crisis governance
The economies of the developed countries of Europe, USA and Japan are still struggling with one of the longer stagnations of modern capitalism. The current financial crisis is a sequence of related crises that did not hit in the same way and with the same intensity the different varieties of capitalism. Using the metaphor of a virus jumping between species, one can say that the global financial crisis, which was triggered by the sub-prime crisis in 2007 and reached a dramatic peak with the bankruptcy of Lehman Brothers in September 2008, did not cause the collapse of world finance because governments rescued banks with taxpayers' money but it contributed to an economic recession with a sharp decline in production and per capita income and a loss of jobs. The crisis entered a new phase with the sovereign debt crisis of some Eurozone economies; and then it reached another peak, adding a social and a political dimension, with a further rise in unemployment, increasing poverty and social exclusion, as well as growing political dissatisfaction, declining consensus among the middle classes, a resurgence of populist nationalism, which challenged the established parties and in some cases even threatened democratic stability.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.