The politics of quantitative easing and housing stimulus by the Federal Reserve and European Central Bank, 2008‒2018

Reisenbichler, Alexander

doi:10.1080/01402382.2019.1612160

Cited by 19 publications

(3 citation statements)

References 35 publications

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“…After some internal confusion and controversy [Abolafia 2020], it stepped in on a massive scale to backstop secondary markets in subprime mortgages and associated money markets. Purchases of securitized mortgage assets remained a core feature of the Fed's QE, with the explicit intent of stabilizing access as well as costs for millions of (prospective) homeowners [Reisenbichler 2020]. In the early 2010s, the overt justification of Fed balance-sheet operations (particularly government bond purchases) shifted from financial stability to the macroeconomy and jobs [Bernanke 2020].…”

Section: The Proliferation Of Financial Policies Since 2008mentioning

confidence: 99%

Leveraging uncertainty, market-power, and fiscal opacity: The growth of financial security states

Wansleben

2024

Arch. eur. sociol.

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Since 2008, we have observed a more prominent role of the state in economic life, with the widespread use of financial tools. Advancing discussions on the financialization of distributional politics, the expansion of financial statecraft as a result of fiscal conflicts, and the fragmentation of state power, this article explores how proliferating financial policies reconfigure the state and its relationship with the economy as well as its democratic foundations. I introduce the concept of financial security states to theorize reactions to mature financialization and its inherent instabilities, which provoke socially structured demands for public stabilization. Leveraging the tradition of fiscal sociology, I work out differences between taxation and welfare systems and those based on financial security. In particular, I show that financial security states exploit value uncertainties to postpone loss-reckoning, are carried by hybrid state-banking institutions, and leverage the states’ endogenous power within market-based finance. This article argues that the by-and-large regressive distributional outcomes and fiscal costs of financial policies remain opaque, due to strategic obfuscation, the failure of traditional modes of political mediation, and deficient budgeting procedures.

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Section: The Proliferation Of Financial Policies Since 2008mentioning

confidence: 99%

Leveraging uncertainty, market-power, and fiscal opacity: The growth of financial security states

Wansleben

2024

Arch. eur. sociol.

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“…The empirical research on growth models is rapidly expanding and now covers a growing number of topics: cross-country variation in growth trajectories (Baccaro and Pontusson 2016;Bohle and Regan 2021;Johnston and Regan 2018); changes in growth trajectories over time (Erixon and Pontusson 2022;Höpner 2019;Reisenbichler and Wiedemann 2022); variation in policy stance across countries (e.g., fiscal policy, tax policy) as a result of growth model differences (Haffert and Mertens 2021;Hopkin 2020;; the impact of growth models on individual preferences (Baccaro and Neimanns 2022;; the effects of cross-country institutional differences on patterns of inequality and growth (Behringer and van Treeck 2019); the impact of particular sectors on growth (Bürgisser and Di Carlo 2022); and the relationship between growth models and central bank policies (Reisenbichler 2020).…”

Section: The Literature On Growth Model Classification and Operationa...mentioning

confidence: 99%

Operationalizing growth models

Baccaro

Hadziabdic

2023

Qual Quant

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We introduce a novel approach to operationalizing growth models. Drawing on the most recent release of OECD Input–Output Tables, we compute the import-adjusted growth contributions of consumption, investment, government expenditures, and exports for sixty-six countries in the years 1995–2007 and 2009–2018, covering not only advanced Western economies but also Central and Eastern European, South-East Asian, and Latin American countries. We find that most are export-led or domestic demand-led and other forms of growth are rare. Our results differ from other classifications in that they reveal important geographical variation as well as temporal change. In a subsequent step, we illustrate the utility of the methodology by investigating the link between real exchange rate devaluation and export-led growth, a contentious issue in the existing literature. For pre-crisis advanced Western economies, we find an association between the two variables, which is statistically significant only when our new indicator is used.

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“…In response to the economic crisis, governments globally turned to it as a crucial strategy to alleviate the severe economic consequences. The US Federal Reserve created trillions of dollars in new currency through purchasing government bonds and targeted the integrated housing finance market as a monetary transmission strategy to stimulate core elements of the US growth model: credit, demand, and consumption [9].…”

Section: The Advantages Of Relying Solely On Currency Financingmentioning

confidence: 99%

The advantages and disadvantages of relying solely on currency financing to fund government expenditures

Chen

2023

HBEM

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The traditional way to ensure enough government funding is raising taxes. Another alternative option is relying solely on currency financing to fund government expenditures, which is mostly discussed by economists and policy makers. The article introduces some advantages and disadvantages about it and seeks to provide a comprehensive understanding of the matter for the readers. On the one hand, currency financing increases the government’s flexibility, alleviates economic inequality, reduces citizens’ tax burden, improves the innovation capacity of small and medium-sized enterprises, and helps economic recovery. On the other hand, it exerts some negative impacts on the economy, such as inflation, reduction in central bank independence, and trade imbalances. Therefore, both advantages and disadvantages of currency financing should be taken into account before the government makes a decision.

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The politics of quantitative easing and housing stimulus by the Federal Reserve and European Central Bank, 2008‒2018

Cited by 19 publications

References 35 publications

Leveraging uncertainty, market-power, and fiscal opacity: The growth of financial security states

Leveraging uncertainty, market-power, and fiscal opacity: The growth of financial security states

Operationalizing growth models

The advantages and disadvantages of relying solely on currency financing to fund government expenditures

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