Tag Archives: financial liberalization

Fed with credit: financial “liberalization”, deregulation and the role of credit in Iceland’s collapse

Beginning in the 1990s, Iceland embarked on a major “liberalization” policy, privatizing its financial sector and reorganizing regulation. The resulting highly concentrated banking sector refocused on investment banking and international operations, while businesses, consumers and the finance industry itself borrowed … Continue reading

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Financial liberalization hurts non-financial sectors via a brain-drain effect & decreases labour productivity

This interesting (open access) paper “Finance as a Magnet for the Best and Brightest: Implications for the Real Economy” examines how the absorption of talent into the financial sector affects the real sectors in the economy. Based on a sample … Continue reading

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Financialization and Income Inequality in the United States, 1967–2010

This paper “Financialization and Income Inequality in the United States, 1967–2010” (free access), by Bradford M. Van Arnum and Michele I. Naples, presents a historical overview of the unprecedented growth of the financial sector and its implications on income inequality. The paper shows that … Continue reading

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Capital Ideas: The IMF and the Rise of Financial Liberalization

Economic sociologists and political economists must not stop their research at the stage of analyzing the policy and its implications, but rather must go deeper and examine how decisions are made within governance bodies and policy making organizations on national and … Continue reading

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Time for a Visible Hand: Lessons from the 2008 Financial Crisis

The financial crisis, which originated in developed country financial markets, has spread to developing countries and has turned into a global financial meltdown. Governments and Central Banks—though taking many and costly measures—seem powerless to stop the crisis. In light of … Continue reading

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