Journal article
Financialization, wealth and the changing political aftermaths of banking crises
JM Chwieroth, A Walter
Socio Economic Review | OXFORD UNIV PRESS | Published : 2022
DOI: 10.1093/ser/mwaa017
Abstract
Households face two politically salient risks associated with financial instability. The first risk, which has existed for perhaps centuries, is associated with the indirect effect of systemic banking crises on employment and income flows. The second risk arises from the direct effects of crises on asset prices and thus household wealth stocks. Historically, the second risk mainly affected only a narrow wealthy elite. We argue that the rapid expansion and financialization of middle-class wealth since the mid-20th century mean that many voters now have 'great expectations' regarding government responsibility to protect their wealth. The political risks of financial instability for incumbent g..
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Awarded by UK Research and Innovation
Funding Acknowledgements
An earlier version of this article was presented at the annual meeting of the International Political Economy Society, Madison, WI, November 11 and 12, 2011. The support of the Economic and Social Research Council (ESRC) in funding the Systemic Risk Centre is gratefully acknowledged [grant number ES/K002309/1]. This research also received financial support from J.M.C.'s MidCareer Fellowship from the British Academy for the Humanities and the Social Sciences [MD130026], from Chwieroth's AXA Award from the AXA Research Fund, from J.M.C. and A.W.'s Discovery Project award from the Australian Research Council [DP140101877], and from a seed fund grant from the Melbourne School of Government. The authors are grateful for helpful comments on earlier drafts provided by Christopher J. Anderson, David Andrews, Leonardo Baccini, Ken Benoit, Sarah Binder, Frederick Boehmke, Janet Box-Steffensmeier, Mark Buntaine, Richard Carney, Keith Dowding, Zachary Elkins, Eric Helleiner, Christopher Gandrud, Julia Gray, Dominik Hangartner, Philip Keefer, Luke Keele, Jouni Kuha, David Leblang, Amanda Licht, Christopher Meissner, James Melton, Paul Preston and Dennis Quinn. The authors would like to acknowledge the research assistance of Hortense Badarani, Wendy Chen, Noemie Chomet, Alexia Leckie, Alexander Parsons, Richard Reid, Bill Roosman and Sam Wilkins.