Capitalizing on Crisis
Capitalizing on Crisis offers a political sociology of the rise of finance in the U.S. economy over the last three decades. Krippner’s core argument is that successive U.S. administrations embraced policy choices that heightened financialization as a way to escape direct confrontation with the pressing issues of fiscal crisis and legitimation crisis that emerged in the late 1960’s, rather than as a policy goal of its own. This is an extremely important argument for understanding the last forty years of U.S. politics and social development and it helps reconnect economic sociology to political sociology. Krippner focuses on state actions that were crucial to creating a macroenvironment conducive to financialization: (1) the deregulation of financial markets during the 1970s and 1980s; (2) policies that encouraged foreign capital inflows into the U.S. economy in the context of large fiscal imbalances in the early 1980s; and (3) changes in the conduct of monetary policy following the shift to tight monetary policies (high interest rates) in 1979.
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2 What Is Financialization?
3 The Social Politics of US Financial Deregulation
4 The Reagan Administration Discovers the Global Economy
5 The Making of US Monetary Policy
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allocation analysis Arrighi associated Banking and Currency Bell borrowers capital inflows capital markets cash flow Chairman Chapter Committee on Banking consumer context Credit Crunch decades depoliticization deposits depreciation allowances deregulation discount window dollar domestic Donald Kohn economic activity economist federal funds rate Federal Reserve financial deregulation financial markets financial sector financial to nonfinancial fiscal crisis FOMC transcripts foreign capital foreign taxes global Greenspan growth high interest rates increased increasingly industry inflation interest rate ceilings Interview investment legislation loan ment monetarism monetary policy money supply move nancial nomic nonfinancial firms nonfinancial profits open market operations outcomes period policy regime policymakers political problem productive profits earned abroad ratio Reagan administration Regulation Q Reserve’s response result role Ronald Reagan social state’s targeting Testimony thrifts tion Treasury turn to finance U.S. corporations U.S. economy U.S. House Committee U.S. profits earned U.S. Senate Committee Urban Affairs Volcker William Niskanen