Front Matter
Author: Jihad Dagher1
  • 1 https://isni.org/isni/0000000404811396, International Monetary Fund

Front Matter Page

Research Department

Contents

  • Abstract

  • 1 Introduction

  • 2 Literature

    • 2.1 Financial crises and their political economy

    • 2.2 The political economy of financial regulation

  • 3 Revisiting financial Crises

    • 3.1 The South Sea Bubble

    • 3.2 The Financial Crisis of 1825

    • 3.3 The Great Depression

    • 3.4 The Japanese Financial Crisis of the 1990s

    • 3.5 The Swedish Banking Crisis

    • 3.6 The Korean Financial Crisis of the 1990s

    • 3.7 The U.S. Dot-Com Episode of the late 1990s

    • 3.8 The Irish Financial Crisis of 2008

    • 3.9 The U.S. Great Recession of 2007–2009

    • 3.10 Spain’s Housing Boom and Bust

  • 4 Discussion

    • 4.1 The regulatory pendulum

    • 4.2 Political economy elements of the cycle

    • 4.3 Potential theories behind these patterns

  • 5 Conclusion

  • References

  • Figures

  • 1. The graph shows the staffing and the budget of financial regulation agencies in the U.S. from 1960 to 2013. The data are taken from a study from the Weidenbavm Center (Washington University) and the Regulatory Studies Center (George Washington University) derived from the Budget of the United States.

  • 2. The graph plots the budget of the SEC, taken from the SEC (link), against the S&P index.

  • 3. The panel includes four figures from four different countries and episodes. The Top left figure shows staffing at the Ministry of Finance in Japan during the boom-bust episode, plotted against the Nikkei index to provide the timing of the boom-bust. The staffing data are taken from the Bank of Japan link. The top right figure shows the budget of financial regulators in South Korea during the South-East Asian boom-bust episode. Since the authority of financial regulation has at least partly shifted from the Bank of Korea to a new agency (FSS) the pre- and post-crash figures are not comparable in levels (as discussed further in the text). The data are plotted against credit growth to show the timing of the crash. The sources of the budget data come from Bank of Korea link and Financial Supervisory Service link. The bottom left figure shows the budget of the Bank of Spain (BdE), plotted against the stock market IBEX index, from the most recent boom-bust episode. The budget data are taken from the Bank of Spain link. The bottom-right figure shows the budget of the Central Bank of Ireland which taken from the Central Bank of Ireland (link), plotted against the stock market ISEQ index.

  • 4. The graph shows the percent of the respondents who have a great deal of confidence in Banks and in Major companies. The data are the General Social Survey 2012 produced by the National Opinion Research Center at the University of Chicago. http://www.norc.org/

  • Tables

  • 1. Dependent variable: Regulation on bank capital

  • 2. Dependent variable: Regulation on official supervision power

Regulatory Cycles: Revisiting the Political Economy of Financial Crises
Author: Jihad Dagher