A Theory of Entangled Political Economy, with Application to TARP and NRA
22 Pages Posted: 12 Mar 2014
Date Written: March 10, 2010
The recent financial crisis has provoked a raft of contending claims as to whether the cause of the crisis is better attributed to market failure or political failure. Such claims are predicated on a presumption that markets and polities are meaningfully separate entities. To the contrary, we argue that contemporary arrangements create an entangled political economy that renders theorizing based on separation often misleading. Within this alternative framework of entangled political economy, we illuminate both the recent Troubled Assets Relief Program (TARP) and the New Deal’s National Recovery Administration (NRA).
Keywords: Bailout, Political economy, Credit markets, Economic calculation, Constitutional economics
JEL Classification: E6, D7, H1
Suggested Citation: Suggested Citation