FINANCIAL MARKET INFLUENCE ON GOVERNMENT POLICY: THEORY AND HYPOTHESES

Author(s):  
Paul Cairney ◽  
Emily St Denny

If ‘prevention is better than cure’, why isn’t policy more preventive? Policymakers only have the ability to pay attention to, and influence, a tiny proportion of their responsibilities, and they engage in a policymaking environment of which they have limited understanding and even less control. This simple insight helps explain the gap between stated policymaker expectations and actual policy outcomes. We use these insights to produce new empirical studies of ‘wicked’ problems with practical lessons. We find that both the UK and Scottish governments use a simple idiom—prevention is better than cure—to sell a package of profound changes to policy and policymaking. Taken at face value, this focus on ‘prevention’ policy seems like an idea ‘whose time has come’. Yet, ‘prevention’ is too ambiguous until governments give it meaning. No government has found a way to turn this vague aim into a set of detailed, consistent, and defendable policies. We examine what happens when governments make commitments without knowing how to deliver them. We compare their policymaking contexts, roles, and responsibilities, policy styles, language, commitments, and outcomes in several cross-cutting policy areas (including health, families, justice, and employability) to make sense of their respective experiences. We use multiple insights from policy theory to help research and analyse the results. The results help policymakers reflect on how to avoid a cycle of optimism and despair when trying to solve problems that their predecessors did not.


2000 ◽  
Vol 54 (4) ◽  
pp. 737-773 ◽  
Author(s):  
Layna Mosley

A central research question in international political economy concerns the influence of financial markets on government policy outcomes. To what extent does international capital mobility limit government policy choices? I evaluate the relationship between international financial markets and government policy outcomes, with a focus on the government bond market in developed democracies. Evidence includes interviews with financial market participants and a cross-sectional time-series analysis of the determinants of interest rates. This evaluation suggests that governments of developed democracies face strong but narrowly defined financial market pressures. Financial market participants are concerned with a few macroeconomic policy indicators, including inflation rates and government deficit/GDP ratios, but not with micropolicy indicators, such as the distribution of government spending across functional categories. In these areas, governments retain policymaking autonomy. I conclude by exploring the role of financial market influences within domestic politics and offering suggestions for further research.


2020 ◽  
Author(s):  
Steven J Bickley ◽  
Ho Fai Chan ◽  
Benno Torgler ◽  
Richard Colthurst ◽  
Martin Brumpton

COVID-19 has had far-reaching global effects on the health and wellbeing of individuals on every continent. The economic and financial market response has been equally disastrous with high levels of volatility. This study explores temporal relations between structural breaks, market volatility and government policy interventions for 28 countries and their respective financial market indices.File description:Scripts:breaks.do – test for the unknown structural breaks in the turnover data.turnover.do – merge the mobility dataset (change in mobility to residential), stay-at-home policy, COVID stats, and turnover. It also generates the dataset for the R code (should upload yours) and the rest of the analysis.hurstexponent.R - estimates/calculates log returns, performs STL Decomposition and MFDFA analysis. Data:mobility.dat - Google mobility databloomberg_turnover.dat - Raw traded value from Bloombergturnover.do - merged traded value datacsse.dat - COVID-19 statisticsPlease contact [email protected] for questions and refer to our accompanying paper. Recommended Citation: TBAData use policy: Creative Commons Attribution CC BY standard.


2005 ◽  
pp. 72-89 ◽  
Author(s):  
Ya. Pappe ◽  
Ya. Galukhina

The paper is devoted to the role of the global financial market in the development of Russian big business. It proves that terms and standards posed by this market as well as opportunities it offers determine major changes in Russian big business in the last three years. The article examines why Russian companies go abroad to attract capital and provides data, which indicate the scope of this phenomenon. It stresses the effects of Russian big business’s interaction with the world capital market, including the modification of the principal subject of Russian big business from integrated business groups to companies and the changes in companies’ behavior: they gradually move away from the so-called Russian specifics and adopt global standards.


2008 ◽  
pp. 4-19 ◽  
Author(s):  
A. Ulyukaev ◽  
E. Danilova

The authors point out that the local market crisis - on the USA substandard loan market - has led to the uncertainty of the world financial market. It has caused the growing demand for liquidity in the framework of the world financial system. The Russian banking sector seems to be more stable under negative changes than banking systems of other emerging markets. At the same time one can assume that the crisis will become the factor of qualitative shift in the character of the Russian banking sector development - the shift from impetuous to more balanced growth.


2016 ◽  
Vol 25 (3) ◽  
pp. 294-316 ◽  
Author(s):  
Chik Collins ◽  
Ian Levitt

This article reports findings of research into the far-reaching plan to ‘modernise’ the Scottish economy, which emerged from the mid-late 1950s and was formally adopted by government in the early 1960s. It shows the growing awareness amongst policy-makers from the mid-1960s as to the profoundly deleterious effects the implementation of the plan was having on Glasgow. By 1971 these effects were understood to be substantial with likely severe consequences for the future. Nonetheless, there was no proportionate adjustment to the regional policy which was creating these understood ‘unwanted’ outcomes, even when such was proposed by the Secretary of State for Scotland. After presenting these findings, the paper offers some consideration as to their relevance to the task of accounting for Glasgow's ‘excess mortality’. It is suggested that regional policy can be seen to have contributed to the accumulation of ‘vulnerabilities’, particularly in Glasgow but also more widely in Scotland, during the 1960s and 1970s, and that the impact of the post-1979 UK government policy agenda on these vulnerabilities is likely to have been salient in the increase in ‘excess mortality’ evident in subsequent years.


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