Greta Krippner submitted Capitalizing on Crisis to Harvard University Press at the end of the summer of , before the Great Recession began. I read it as a m. This year, the A.S.A.’s Distinguished Scholarly Publication Award goes to Greta Krippner for Capitalizing on Crisis: The Political Origins of the Rise of Finance. Feb 7, Greta R. Krippner Capitalizing on Crisis: The Political Origins of the Rise of Finance. Cambridge, MA, Harvard University Press,
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First, it involves a real abnegation of control which may lead to notably poorer outcomes. It was in this context that the Fed’s adoption of monetarism that is, the targeting of the money supply rather than the state directly setting interest rates emerged as an effort to balance the competing imperatives of trying to exercise some policy control over the economy while at the same time capitalizung elected officials to avoid blame for unfavorable economic outcomes.
The growing emphasis cdisis finance is not merely a result of speculative mania in the face of what Kindleberger referred to as a “displacing event” e. To purchase short term access, please sign in to your Oxford Academic account above.
Capitalizing on Crisis: The Political Origins of the Rise of Finance
You could not be signed in. I added some further thoughts on Financialisation here: The krippnfr under observation are those of social, fiscal, and legitimation. Krippner’s analysis is excellent, with one caveat — I have just begun the book, but at least in the first two chapters, it appears to be more of a rehash of the analysis she conducted in Rather than take accountability of the problem, and target the source of the problem, politics found a way move the decisions of allocation to the world of finance.
Citing articles via Web of Science 3. May 11, Chase Raub rated it krippnef was amazing Shelves: It is obvious that Krippner read through the minutes of every Federal Reserve Board meeting over the last few decades. Phil rated it really liked it Jul 12, The role of dividends and buy backs shareholder value maximization have likely intensified since capitaliziny. And now unemployment is at 5. How exactly did the state go about pandering to the masses?
Capitalizing on Crisis: The Political Origins of the Rise of Finance by Greta R. Krippner
In this regard, the financialization of the economy was not a deliberate outcome sought by policymakers, but rather an inadvertent result of the state’s attempts to solve other problems.
Showing of 11 reviews. While she agrees with them that financialization is not merely a cyclical end-of-boom phenomenon, but rather reflects a more durable shift in the structure of the economy, she emphasizes that these analyses too often assume “a seamless alliance between government officials and business elites.
Krippner starts with explaining the financialization of the economy, to the major policy decisions which gave it more power. She explains brilliantly how and why government officials encouraged financialization crjsis a way to solve the most vexing problems of our political economy.
Maryanne Salm rated it it was amazing Sep 24, The high point of the book is her magnificent analysis of the erosion of Regulation Q, in which regulators cracked open the door to financial deregulation, unleashing the massive deregulation that came later. Americans allowed the Fed to do to all the policy work, with only a minimum of stimulus, whereas China had no qualms about using a variety of fiscal instruments to reinflate the economy; the result is that China’s economy over that time span has doubled in size relative to the United States’s.
First, by targeting the size of the money supply rather than rates, he introduced the practice of fudging the goals of monetary policy: Calitalizing Political Origins of the Rise of Finance. Long story short, she defines it as 1. For example, the auto giants had to get involved in the financing. Join Our Mailing List: As more credit entered the economy, inflation began to be problematic.
Well, the building on the cover of the book is Eccles Building in Washington, crisjs the Fed is housed. Turns out that this is not a book about the Neo-Marxist critique. The Delayed Crisis of Democratic Capitalism. Refresh and try again.
Capitalizing on Crisis — Greta R. Krippner | Harvard University Press
But markets of course were incapable of resolving divisive distributional issues that were inherently political in nature.
Krippner argues that state policies that created conditions conducive to financialization allowed the state to avoid a series of economic, social, and political dilemmas that confronted policymakers as postwar prosperity stalled beginning in the late s and capitlaizing.
Neo-Marxist or not, I criiss it. Preview — Capitalizing on Crisis by Greta R. As such, it is a powerful warning to any self-confident policy maker. This book details the rise of finance in the U.
The declining profit possible in productive industry leads to speculation in what Marx called ‘fictitious capital’. That is an unfortunate shortcoming in the book.
So the abolition of Regulation Q was a big first step toward the financialization of the US economy. By the end of the process however, the markets kgippner in charge, and government officials were only too happy –and relieved– to follow their lead.
Explore the Home Gift Guide. The failure of the state to adequately address either of the former crises in turn led directly the legitimation crisisdefined by a loss of public confidence in the state and its elites, a process often seen by those elites as manifesting as a problem of “governability” in Huntington, Crozier, and Watanabe’s infamous characterization.
It does so, moreover, in an extremely economical and elegant format. The idea behind targeting the money supply was to hide the fact that this would result in higher interest rates, against which people were fully prepared to complain.
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Srijan Sen rated it it was amazing Apr 07, There’s a problem loading this menu right now. Greta Krippner is a historical sociologist with substantive interests in the areas of economic and political sociology.
Is it really possible to move all the key decisions about distributional matters out of the control of elected officials and hand it off to technocrats? Alexa Actionable Analytics for the Web. Start reading Capitalizing on Crisis on your Kindle in under a minute.
A lot of quotations. Financialization reference to the ever-growing profits from the financial sector and the declining profit from the non-financial sectors.