scholarly journals Financialization revisited: the economics and political economy of the vampire squid economy

2021 ◽  
Vol 9 (4) ◽  
pp. 461-492
Author(s):  
Thomas Palley
Keyword(s):  
Political Economy ◽  
Critical Role ◽  
Central Banks ◽  
Political Support ◽  
Budget Deficits ◽  
Government Budget ◽  
Role Of Government ◽  
Balance Sheets ◽  
Lock In

This paper explores the economics and political economy of financialization using Matt Taibbi's vampire squid metaphor to characterize it. The paper makes five innovations. First, it focuses on the mechanics of the ‘vampire squid’ process whereby financialization rotates through the economy, loading sector balance sheets with debt. Second, it identifies the critical role of government budget deficits for the financialization process. Third, it identifies the critical role of central banks, which are the lynchpin of the system and now serve as de facto guarantors of the value and liquidity of private sector liabilities. Fourth, the paper argues financialization imposes a form of policy lock-in. Fifth, it argues financialization transforms popular attitudes and understandings, thereby generating political support despite poor economic outcomes. In effect, there is a politics of financialization that goes hand-in-hand with the economics. The paper concludes with some observations on why mainstream macroeconomics has no equivalent construct to financialization and discusses the disquieting unexplored terrain that the economy is now in.

scholarly journals Innovation Capabilities and the Performance of Start-Ups in Korea: The Role of Government Support Policies

2021 ◽  
Vol 13 (11) ◽  
pp. 6009
Author(s):  
Se-Kyoung Choi ◽  
Sangyun Han ◽  
Kyu-Tae Kwak
Keyword(s):  
Firm Performance ◽  
Financial Support ◽  
Political Support ◽  
Sustainable Growth ◽  
Government Support ◽  
Role Of Government ◽  
Positive Effects ◽  
Start Up ◽  
Start Ups

What kind of capacity is needed to improve the performance of start-ups? How effective are government support policies in improving start-up performance? Start-ups are critical firm group for ensuring the prospective and sustainable growth of an economy, and thus many countries’ governments have established support policies and they are likely to engage more widely in forward-looking political support activities to ensure further growth and expansion. In this paper, the effect of innovation capabilities and government support policies on start-up performance is examined. We used an unbalanced panel data analysis with a random effect generalized least squares. We investigated the effect of government support policies on 4368 Korean start-ups. The findings indicated that technology and knowledge capabilities had positive effects on the sales performance of start-ups, and government financial support positively affected the relationship between knowledge capability and firm performance. However, when government financial support increased, marketing capability was negatively associated with firm performance. These results demonstrate the significant role of government financial support, including its crowding in but also its crowding out effect. Practical implications: To be more effective, governments should employ innovation-driven entrepreneurship policy approaches to support start-ups. To improve their performance, start-ups need to increase their technology and knowledge capabilities. This study extends recent efforts to understand more fully the effect of government support policies on start-ups differing in their technology, knowledge, and marketing capabilities.

scholarly journals Securitization of (bad) loans to Italian SMES: The role of the public guarantee

2021 ◽  
Vol 16 (4) ◽  
pp. 193-208
Author(s):  
Lucilla Bittucci ◽  
Stefano Marzioni ◽  
Pina Murè ◽  
Marco Spallone
Keyword(s):  
Financial Stability ◽  
Positive Impact ◽  
Central Banks ◽  
General Purpose ◽  
Recent Past ◽  
Balance Sheets ◽  
Access To Credit ◽  
The Public ◽  
Main Factors

This study investigates the main factors driving the evolution of the securitization of loans to Italian small and medium-sized enterprises (SMEs). The value of securitization increased in last two years, even though it has not been used as collateral for central banks. The disposal of non-performing loans (NPLs) may have been rather triggered by increasing attention of the international institutions to such an issue, within the general purpose of financial stability. The purpose of this paper is to interpret such a phenomenon focusing on Italian banks and restricting the analysis to the case of securitizations backed with loans to small and medium-sized enterprises (SMEs). The interesting result that emerges, supported by econometrically tested empirical evidence, is that given the orientation of international financial institutions, such as the ECB and the EBA, and reacting to incentives coming from the fiscal policy authorities for the public guarantee of loans, banks have been using securitization to reduce the burden on their bad balance sheets due to (NPLs). It was found that the public guarantee had a positive impact on SME securitization, whereas securitization in other sectors has not been affected significantly. Such evidence suggests that, in the absence of a public guarantee, the financial stability target would have been at risk, and the effectiveness of collateral-based policies in the recent past must be improved to enhance access to credit for SMEs.

scholarly journals Are Government Budget Deficits Inflationary? Evidence from Pakistan

1994 ◽  
Vol 33 (4II) ◽  
pp. 955-967 ◽  
Author(s):  
Tayyeb Shabbir ◽  
Ayaz Ahmed
Keyword(s):  
Budget Deficit ◽  
Structural Adjustment ◽  
Oil Price ◽  
Optimal Size ◽  
Budget Deficits ◽  
Government Budget ◽  
Economic Role ◽  
Current Account Deficits ◽  
Structural Adjustment Programmes

In academia as well as policy-making institutions, there has been a long standing interest in analysing the phenomenon of inflation. Amongst the possible determinants of inflation, budget deficits may be one whose importance might have grown since the oil price hikes of 1973-74 and in 1979. For many a developing countries these increases in oil price have been responsible for the massive current account deficits as well as rapidly increasing domestic budget deficits of the last decade or so. During the 1980s, the budget deficit for Pakistan also grew rapidly reaching a record high of 8.6 percent of the G D P in 1987-88. Lately in the backdrop of the recent structural adjustment programmes, there has been much interest in determining the optimal size and the macro economic role of the budget deficits. However, despite its growing importance, the effects of budget deficits are not well understood.

The Political Economy of Crisis Responses

2019 ◽  
pp. 43-58
Author(s):  
Agnar Freyr Helgason
Keyword(s):  
Political Economy ◽  
Government Policy ◽  
The Political ◽  
Economic Welfare ◽  
Role Of Government ◽  
Policy Responses ◽  
Policy Debates ◽  
Key Policy ◽  
Crisis Responses

Chapter 3, by Agnar Freyr Helgason, offers a review of political economy theories of crises responses. He starts by explaining the broad perspectives of the Keynesian and Austrian schools and then probes more deeply into recent work on government policy responses to economic crises, with a focus on the economic welfare of populations or households. The role of the welfare state and its importance during periods of crisis is considered, as well as the role of government policy more broadly, either that directed at the economy generally or at specific population groups. Key policy debates are covered, for example austerity versus stimulus, as well as mixed approaches.

Over-tourism and sustainable consumption of resources through sharing: the role of government

2019 ◽  
Vol 6 (1) ◽  
pp. 99-116 ◽  
Author(s):  
Elizabeth Agyeiwaah
Keyword(s):  
Sustainable Consumption ◽  
Political Support ◽  
Specific Reference ◽  
Role Of Government ◽  
Content Type ◽  
Study Approach ◽  
Local Residents ◽  
Residents Attitudes

Purpose Over-tourism signifies the dilemma of managing tourism growth in cities. With growing media sensationalism and an oversimplification of the phenomenon of over-tourism, its academic theorization has become extremely important. Using Macau, a Special Administrative Region of China as a case in point, the purpose of this paper is to theoretically explore the nexus between over-tourism and sustainable consumption in cities, highlighting governments’ inevitable role in this successful convergence. Design/methodology/approach The study is based on a selective systematic literature review (SLR) of existing studies in the form of both news material and academic journals. It investigates the growing concern of over-tourism and the contribution of sustainable consumption grounded in strong political support. It also adopts a case study approach with specific reference to Macau. Findings The general overview of the literature provides evidence of an age-old concept that has re-emerged to make local residents’ voice more pronounced. Generally, the studies concentrate on understanding residents’ attitudes, the perceived impact of over-tourism, community resilience and sustainable strategies to tackle the problem. Most popular studies are recent (i.e. 2018 and beyond) and empirically set in developed cities of Europe. Research limitations/implications The SLR used in the current study requires further empirical testing to validate some of the proposed concepts in the literature. Practical implications The study highlights the role of government in ensuring that sustainable consumption is sustainably implemented in the context of over-tourism. Originality/value Given the re-emergence of over-tourism, yet with few theoretical discussions on the concept, this study serves as a knowledge-base for future studies both empirically and theoretically.

Book Reviews

2019 ◽  
Vol 57 (4) ◽  
pp. 1005-1007
Keyword(s):  
Political Economy ◽  
The Political ◽  
Role Of Government ◽  
Process Structure

Charles H. Anderton of Department of Economics and Accounting, College of the Holy Cross reviews “The Political Economy of Defence,” edited by Ron Matthews. The Econlit abstract of this book begins: “Nineteen papers cover the process, structure, and political economy of defense, emphasizing the role of government in the provision of defense.”

scholarly journals THE ROLE OF GOVERNMENT ON POLITICS AND INTERNATIONAL TRADE

2019 ◽  
Vol 7 (3) ◽  
pp. 642-650
Author(s):  
Rabiul Islam ◽  
Salwani Arbak ◽  
Mohd Hasanur Raihan Joarder
Keyword(s):  
Political Economy ◽  
International Trade ◽  
Role Of Government ◽  
Goods And Services ◽  
The Subject ◽  
Political Intervention ◽  
The Government ◽  
Global Exchange ◽  
Basic Position

Purpose of the study: The aim of this study is to discuss the role of government on politics and trade. Political economy brings the production and exchange of goods and services that are parallel with the country’s law. The government plays a massive role because if it is not effective then the trade profitability will be decreased. Thus, political intervention is needed to protect the development of economy, sovereignty, and citizens of the state. Methodology: The data for this study were obtained from existing literatures on the role of government on politics and international trade. The methodology relied heavily on existing literatures on the subject being dealt with. Result: Political economy on international trade enables the cheap production and import of goods and services in the country. This is because international trade does not limit to commodities as they are produced by only some countries. Finally, political economy can be surveyed by comprehensively gathering political aspects, such as national policies and their administration, and this will take a basic position on the existing and ideal financial models, organizations, and related policies which are being formulated by micro- and macro-economic agendas. Implication: The interest for the political economy of trade arrangement is the complementary impact of global exchange on local and worldwide legislative issues.

scholarly journals ANALISIS DAMPAK ANGGARAN PENDAPATAN DAN BELANJA DAERAH TERHADAP PERTUMBUHAN EKONOMI, KEMISKINAN DAN PENGANGGURAN DI SULAWESI UTARA

2019 ◽  
Vol 18 (3) ◽  
Author(s):  
Debby Ch. Rotinsulu ◽  
Avriano R. Tenda ◽  
Luciana M. Leonufina
Keyword(s):  
Economic Growth ◽  
Capital Expenditures ◽  
Regional Government ◽  
Government Budget ◽  
Role Of Government ◽  
Policy Makers ◽  
The North ◽  
North Sulawesi ◽  
Regional Budget

ANALISIS DAMPAK ANGGARAN PENDAPATAN DAN BELANJA DERAH TERHADAP PERTUMBUHAN EKONOMI, KEMISKINAN DAN PENGAGGURAN DI SULAWESI UTARA Debby Ch. Rotinsulu, Avriano R. Tenda, Luciana M. Leonufina Fakultas Ekonomi dan Bisnis, Ilmu Ekonomi Pembangunan Universitas Sam Ratulangi, Manado ABSTRAK Pertumbuhan ekonomi, angka kemiskinan serta pengangguran tentunya tidak lepas dari peran serta pemerintah sebagai pengambil kebijakan serta kuasa penggunaan anggaran untuk dapat merangsang perekonomian menuju ke arah yang lebih baik melalui Anggaran Pendapatan dan Belanja Daerah yang tentunya diharapkan akan mempercepat roda perekonomian. Dengan adanya  perputaran cepat roda perekonomian diharapkan akan membuka peluang ekonomi baru yang tentunya akan menarik tenaga kerja yang berdampak pada penurunan angka pengangguran dan meningkatkan taraf hidup masyarakat dan tidak lagi terpuruk pada jurang kemiskinan. Untuk itu dalam penelitian ini bertujuan untuk melihat seberapa pengaruh pemerintah melalui APBD nya dalam meningkatkan pertumbuhan , menekan angka pengangguran dan mengurangi kemiskinan di Kabupaten, Kota di wilayah Sulawesi Utara. Kata Kunci: APBD, Belanja Modal, Pertumbuhan Ekonomi, Kemiskinan, pengangguran ABSTRACT Economic growth, poverty and unemployment must not be separated from the role of government as policy makers and power use of the budget to stimulate the economy towards better through the Regional Budget which is certainly expected to accelerate the economy. With the quick turnaround of the economy is expected to open up new economic opportunities that will attract workers who have an impact on the growth of unemployment and improve people's lives and can no longer hit in poverty. Therefore in this study aims to see how the government's influence over its budget to boost growth, reduce unemployment and reduce poverty in the District, City in the North Sulawesi. Keywords: Regional Government Budget, Capital Expenditures, Economic Growth, Poverty, Unemployment

Victory

2019 ◽  
pp. 221-242
Author(s):  
Melvyn P. Leffler
Keyword(s):  
Political Economy ◽  
Cold War ◽  
Social Democracy ◽  
The West ◽  
Role Of Government ◽  
Democratic Capitalism ◽  
The World ◽  
The Cold War ◽  
Do So

This chapter argues that the West “won” the Cold War because statesmen made systems of democratic capitalism and social democracy work effectively. The challenge for democratic leaders throughout the world was to thwart the appeal of communism and co-opt revolutionary nationalist movements. To do so, they had to reinvent the role of government—not to supplant markets, but to make markets work more effectively and equitably. They avoided intracapitalist conflict, won the support of their own peoples, and created a culture of consumption that engendered the envy of peoples everywhere. In this contest over rival systems of political economy, the role of government was not the problem; it was part of the solution. But it had to be calibrated carefully.

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