The Myth of Rational Finance and the Crisis of Democracy
Distributed for Campus Verlag
In addressing these questions, this volume draws upon political economy as an approach to analyze the concept of systemic risk as well as corresponding dilemmas of political order, legitimacy, and expertise. The resulting discussion posits major consequences for the political governance of financial systems in the increasingly interconnected world of the twenty-first century.
2 Describing Systemic Risk
2.1 Basic Features of Systemic Risk
3 The Myth of Rational Finance: A Review of Systemic Properties of
3.1 System Governance
3.2 Overconfidence in Governance Capabilities
3.3 Learning Disabilities
4 Understanding Systemic Risk
4.1 An Economic Approach to Systemic Risk
4.2 A Political Approach to Systemic Risk
4.3 An Integrated Approach to Systemic Risk
5 Micro-Cases of Global Financial Governance Institutions
5.1 The FSB
5.2 The BCBS
5.3 A Critical Examination of the FSOC
5.4 An Early Assessment of the ESRB
6 What’s Democracy Got to Do with it – a Crisis of Democracy?
7 What’s Law Got to Do with it?