The Domestic Political Origins of Global Financial Standards: The Agrarian Roots of American Securities Regulations

Business and Politics, 2011, Vol. 13, No. 3: 1-39.

52 Pages Posted: 24 Sep 2007 Last revised: 23 Oct 2012

See all articles by Richard W. Carney

Richard W. Carney

China Europe International Business School (CEIBS)

Date Written: June 1, 2011

Abstract

America’s securities markets constitute a central distinguishing feature of its brand of capitalism. What are their political origins? In contrast to arguments which point to business owners as determining the institutional foundations of America’s political economy, this paper argues that farmers played a leading role. Indeed, the rules and regulations governing U.S. securities markets were created in opposition to the wishes of business owners, and without farmers’ political influence, the U.S. may have developed a financial system similar to that found in continental Europe. Moreover, to the extent that U.S. securities regulations serve as a template for international financial standards, the paper shows that the humble American farmer inadvertently contributed to the financialization of the modern global economy.

Keywords: Politics, Finance, Securities and Exchange Commission, SEC

JEL Classification: N20, P10, P50

Suggested Citation

Carney, Richard W., The Domestic Political Origins of Global Financial Standards: The Agrarian Roots of American Securities Regulations (June 1, 2011). Business and Politics, 2011, Vol. 13, No. 3: 1-39., Available at SSRN: https://ssrn.com/abstract=1016647 or http://dx.doi.org/10.2139/ssrn.1016647

Richard W. Carney (Contact Author)

China Europe International Business School (CEIBS) ( email )

Shanghai-Hongfeng Road
Shanghai 201206
Shanghai 201206
China

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