M P RA Munich Personal RePEc Archive Political Economic Pressures in Financial Crisis Resolution Political Economic Pressures in Financial Crisis Resolution
The free flow of global capital has been accompanied by destabilizing financial crises, coupled with significant redistributive effects. However, the existing literature has not adequately addressed the channels for this redistribution, nor the different factors that influence the formation of post-crisis redistributive policy. This paper develops a theoretical model that captures the influence of domestic special interest lobbying and international bilateral bargaining on the formation of
... ibrium lending, bailout, and reallocation decisions. The paper then takes the theoretical model to the data, testing two key predictions of the model using both micro-and macro-level datasets. Finally, implications for international financial reform are examined in light of the model's findings. for very helpful comments and discussions. This paper could have been a far superior product had I managed to incorporate all of their suggestions (or been less obstinate about not doing so). Naturally, I absolve them from any errors, omissions, and outright lies. Lawrence Broz, Ray Fisman, Erik Voeten, and the Social Sciences Data Collection at UC San Diego very generously shared their data. Financial support from the Graduate Division and the Institute on Global Conflict and Cooperation helped pay for the beer and pizza, and made the long, lonely nights that much more tolerable. Will much impeach the justice of his state; Since that the trade and profit of the city Consisteth of all nations. Therefore, go: These griefs and losses have so bated me, That I shall hardly spare a pound of flesh Tomorrow to my bloody creditor.