Governance, Regulation and Financial Market Instability: The Implications for Policy

Cambridge Centre for Business Research Working Paper No. 392

41 Pages Posted: 19 Sep 2011 Last revised: 20 Sep 2011

See all articles by Suzanne J. Konzelmann

Suzanne J. Konzelmann

University of London - Birkbeck College - Faculty of Social Sciences, School of Management and Organizational Psychology; University of Cambridge - Faculty of Social and Political Sciences

Frank Wilkinson

affiliation not provided to SSRN

Marc Fovargue-Davies

University of London - The London Centre for Corporate Governance & Ethics

Duncan Sankey

affiliation not provided to SSRN

Date Written: December 1, 2009

Abstract

Just as the 1929 Stock Market Crash discredited Classical economic theory and policy and opened the way for Keynesianism, a consequence of the collapse of confidence in financial markets and the banking system - and the effect that this has had on the global macro economy - is currently discrediting the ‘conventional wisdom’ of neo-liberalism. This paper argues that at the heart of the crisis is a breakdown in governance that has its roots in the co-evolution of political and economic developments and of economic theory and policy since the 1929 Stock Market Crash and the Great Depression that followed. However, while many are looking back to the Great Depression and to the theories and policies that seemed to contribute to recovery during the first part of the twentieth century, we argue that the current context is different from the earlier one; and there are more recent events that may provide better insight into the causes and contributing factors giving rise to the present crisis and to the implications for theory and policy that follow.

Keywords: corporate governance, regulation, financial market instability

JEL Classification: E32, E44, G38, N10, N20, P17

Suggested Citation

Konzelmann, Suzanne J. and Wilkinson, Frank and Fovargue-Davies, Marc and Sankey, Duncan, Governance, Regulation and Financial Market Instability: The Implications for Policy (December 1, 2009). Cambridge Centre for Business Research Working Paper No. 392, Available at SSRN: https://ssrn.com/abstract=1929629 or http://dx.doi.org/10.2139/ssrn.1929629

Suzanne J. Konzelmann (Contact Author)

University of London - Birkbeck College - Faculty of Social Sciences, School of Management and Organizational Psychology ( email )

Malet Street
Bloomsbury
London, WC1E 7HX
United Kingdom
+44 (0) 207 631 6799 (Phone)

HOME PAGE: http://www.bbk.ac.uk/management/our-staff/academics/konzelmann

University of Cambridge - Faculty of Social and Political Sciences ( email )

ESRC Centre for Business Research
Cambridge, CB2 1TN
United Kingdom
+44 1223 337733 (Phone)

Frank Wilkinson

affiliation not provided to SSRN

No Address Available

Marc Fovargue-Davies

University of London - The London Centre for Corporate Governance & Ethics ( email )

Malet Street Bloomsbury
WC1E 7HX
London, WC1E 7HX
United Kingdom

Duncan Sankey

affiliation not provided to SSRN ( email )

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