The Political Economy of Financial Markets

Oxford Research Encyclopedia of Politics, July 2018, DOI: 10.1093/acrefore/9780190228637.013.628

34 Pages Posted: 30 Nov 2018

See all articles by Federico Maria Ferrara

Federico Maria Ferrara

London School of Economics and Political Science

Thomas Sattler

University of Geneva - Department of Political Science and International Relations

Date Written: February 1, 2018

Abstract

The relationship between politics and financial markets is central for many, if not most, political economy arguments. The existing literature focuses on the effect of domestic and international political interests, institutions and policy decisions on returns and volatility in stock, bond and foreign exchange markets. This research bears implications for three major debates in political science: the distributive effects of politics; globalization and state autonomy; and the political roots of economic credibility and its tensions with democratic accountability. While the study of politics and financial markets is complicated by several theoretical and empirical challenges, recent methodological innovations in political research provide a window of opportunity for the development of the field.

Keywords: partisanship; political institutions; political interests; economic policy; financial markets; redistribution; globalization; credibility; accountability; crises

Suggested Citation

Ferrara, Federico Maria and Sattler, Thomas, The Political Economy of Financial Markets (February 1, 2018). Oxford Research Encyclopedia of Politics, July 2018, DOI: 10.1093/acrefore/9780190228637.013.628, Available at SSRN: https://ssrn.com/abstract=3289339

Federico Maria Ferrara

London School of Economics and Political Science ( email )

Houghton St
Holborn
London, WC2A 2AE
United Kingdom

Thomas Sattler (Contact Author)

University of Geneva - Department of Political Science and International Relations ( email )

40 boulevard du Pont d'Arve
Genève 4, Geneve CH-1211
Switzerland

HOME PAGE: http://www.thomassattler.org

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