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  Öffentlicher Vortrag | Public Lecture
 

Mittwoch, 20. November 2019 | 17 Uhr (s.t.)

The Wealth Effect: How the Great Expectations of the Middle Class Have Changed the Politics of Banking Crises

Jeffrey M. Chwieroth, London School of Economics and Political Science

 


 

 
The rising wealth of middle-class households and voters has transformed the politics of banking crises. In his lecture, Jeffrey Chwieroth explains how mass political demand has contributed to rising financial fragility and political instability and discontent in contemporary democracies. He uses extensive historical and contemporary evidence to demonstrate that the politics of major banking crises have been transformed by the “wealth effect”: rising middle-class wealth has generated “great expectations” regarding government responsibilities for the protection of this wealth. He shows that crisis policy interventions have become more extensive and costly – and their political aftermaths far more fraught – because of democratic governance, not in spite of it. Using data from a large number of democracies over two centuries, and detailed longitudinal studies of Brazil, the United Kingdom, and the United States, Chwieroth explores the consequences of the emergence of mass political demand for financial stabilization.

 
Jeffrey M. Chwieroth is Professor of International Political Economy in the Department of International Relations and Co-Investigator of the Systemic Risk Centre at the London School of Economics and Political Science.

 
Selected Publications
  • Chwieroth, Jeffrey M., and Andrew Walter. 2019. The Wealth Effect: How the Great Expectations of the Middle Class Have Changed the Politics of Banking Crises Cambridge: Cambridge University Press.
  • Chwieroth, Jeffrey M. 2014. "Fashions and Fads in Finance: The Political Foundations of Sovereign Wealth Fund Creation." International Studies Quarterly 58 (4), 752-763.
  • Chwieroth, Jeffrey M. 2010. Capital Ideas: The IMF and the Rise of Financial Liberalization Princeton: Princeton University Press.
  • Chwieroth, Jeffrey M. 2010. "How Do Crises Lead to Change?: Liberalizing Capital Controls in the Early Years of New Order Indonesia." World Politics 62 (3), 496-527.
  • Chwieroth, Jeffrey M. 2008. "Normative Change 'From Within:' The International Monetary Fund’s Approach to Capital Account Liberalization." International Studies Quarterly 52 (1), 129-158.
  • Chwieroth, Jeffrey M. 2008. "Neoliberal Economists and Capital Account Liberalization in Emerging Markets." International Organization 61 (2), 443-463.

 
Preparatory Reading
  • Chwieroth, Jeffrey M., and Andrew Walter. 2019. The Wealth Effect: How the Great Expectations of the Middle Class Have Changed the Politics of Banking Crises Cambridge: Cambridge University Press.
  • Chwieroth, Jeffrey M., and Andrew Walter. 2019. "The Financialization of Mass Wealth, Banking Crises and Politics over the Long Run." European Journal of International Relations 58 (4), 752-763.
  • Chwieroth, Jeffrey M., and Andrew Walter. 2017. "Banking Crises and Politics: A Long Run Perspective." International Affairs 93 (5), 752-763.
 

 
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