Trampusch, Christine and Fastenrath, Florian ORCID: 0000-0002-1939-9141 . States' interests as limits to the power of finance: Regulatory reforms in early local government financialization in the US and UK. Regul. Gov.. HOBOKEN: WILEY. ISSN 1748-5991

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Through a comparison of typical and deviant cases, this study probes and refines the augmented power model which argues that the structural power of the financial industry fosters its instrumental power in influencing regulatory reforms under certain scope conditions. It shows the industry's success in influencing policymakers to authorize municipalities to use derivatives and thereby to financialize their debt management in the US (typical case). The failure of banks to acquire such a law in the UK (deviant case) reveals a hitherto little-noticed condition under which this power explanation collapses: states' fiscal and monetary constitution. We demonstrate that analyzing the operation of finance power requires a precise consideration of how states' fiscal and monetary constitution structures governments' responses to financial industry's regulatory preferences. Moreover, we conclude that synthesizing business power research with literature on the mutual dependence between states and finance helps to explain patterns of state financialization.

Item Type: Journal Article
CreatorsEmailORCIDORCID Put Code
URN: urn:nbn:de:hbz:38-128127
DOI: 10.1111/rego.12292
Journal or Publication Title: Regul. Gov.
Publisher: WILEY
Place of Publication: HOBOKEN
ISSN: 1748-5991
Language: English
Faculty: Faculty of Management, Economy and Social Sciences
Divisions: Faculty of Management, Economics and Social Sciences > Social Sciences > Political Science > Cologne Center for Comparative Politics
Subjects: no entry
Uncontrolled Keywords:
POLITICS; MARKETS; CITYMultiple languages
Law; Political Science; Public AdministrationMultiple languages
Refereed: Yes


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