[Selections by Humberto Barreto for SHOE list.]
nep-hpe <http://nep.repec.org/nep-hpe.html> New Economics Papers
<http://nep.repec.org/> on History and Philosophy of Economics
Issue of 2023‒01‒09
papers chosen by
Erik Thomson <http://econpapers.repec.org/RAS/pth72.htm>
University of Manitoba <http://umanitoba.ca/>
------------------------------
1. Financial Intermediation and Financial Crises
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p1> By Diamond,
Douglas
<http://econpapers.repec.org/scripts/search.pf?aus=Diamond,%20Douglas>
2. Multiple equilibria
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p2> By Dybvig,
Philip
<http://econpapers.repec.org/scripts/search.pf?aus=Dybvig,%20Philip>
3. The Economists and The Combination Laws: A Reappraisal
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p4> By Hupfel,
Simon <http://econpapers.repec.org/scripts/search.pf?aus=Hupfel,%20Simon>
4. On Some “New” Interpretations of Ricardo’s Principle of Comparative
Advantages <https://mail.google.com/mail/u/0/#m_2981747377356445814_p5>
By Parrinello, Sergio
<http://econpapers.repec.org/scripts/search.pf?aus=Parrinello,%20Sergio>
5. J.S.Mill, the American Civil War and Slavery
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p6> By Laura
Valladao de Mattos
<http://econpapers.repec.org/scripts/search.pf?aus=Laura%20Valladao%20de%20Mattos>
6. Families and Women in Alfred Marshall’s Analysis of Well-being and
Progress. <https://mail.google.com/mail/u/0/#m_2981747377356445814_p7>
By Virginie Gouverneur
<http://econpapers.repec.org/scripts/search.pf?aus=Virginie%20Gouverneur>
7. Review of “Scientific History: Experiments in History and Politics
from the Bolshevik Revolution to the End of the Cold War” by Elena Aronova
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p8> By Klein,
Ursula
<http://econpapers.repec.org/scripts/search.pf?aus=Klein,%20Ursula>
8. Nothing new under the sun: The so-called "growth model perspective"
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p9> By Amable,
Bruno <http://econpapers.repec.org/scripts/search.pf?aus=Amable,%20Bruno>
9. De l’Ecole Polytechnique et l’Ecole de la Régulation. Michel
Aglietta, 1959 – 1979.
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p10> By Yamina
Tadjeddine
<http://econpapers.repec.org/scripts/search.pf?aus=Yamina%20Tadjeddine>
10. Hereditarianism, Eugenics and American Social Science in the
Interwar Years: Meet the Carverians
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p12> By Fiorito,
Luca <http://econpapers.repec.org/scripts/search.pf?aus=Fiorito,%20Luca>
; Erasmo, Valentina
<http://econpapers.repec.org/scripts/search.pf?aus=Erasmo,%20Valentina>
11. Varieties of demand and growth regimes: Post-Keynesian foundations
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p13> By Hein,
Eckhard
<http://econpapers.repec.org/scripts/search.pf?aus=Hein,%20Eckhard>
12. Development of Grounded Theory in Social Sciences: A Qualitative
Approach <https://mail.google.com/mail/u/0/#m_2981747377356445814_p14>
By Mohajan, Devajit
<http://econpapers.repec.org/scripts/search.pf?aus=Mohajan,%20Devajit>;
Mohajan,
Haradhan
<http://econpapers.repec.org/scripts/search.pf?aus=Mohajan,%20Haradhan>
13. Unbreakable: A beliefs-based theory of rule-breaking in the
entrepreneurial context
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p15> By Zhang,
Senlin
<http://econpapers.repec.org/scripts/search.pf?aus=Zhang,%20Senlin>;
O'Connor,
Peter
<http://econpapers.repec.org/scripts/search.pf?aus=O%27Connor,%20Peter>;
Gardiner,
Elliroma
<http://econpapers.repec.org/scripts/search.pf?aus=Gardiner,%20Elliroma>
14. Elements of Intellectuality in Decision Making
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p16> By Chatterjee,
Sidharta
<http://econpapers.repec.org/scripts/search.pf?aus=Chatterjee,%20Sidharta>
15. Hands, hearts and hybrids: economic organization, individual
motivation and public benefit
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p17> By Le
Grand, Julian
<http://econpapers.repec.org/scripts/search.pf?aus=Le%20Grand,%20Julian>
; Roberts, Jonathan
<http://econpapers.repec.org/scripts/search.pf?aus=Roberts,%20Jonathan>
16. The Anatomy of Three Scandals: Conspiracies, Beauty Contests and
Sabotage in OTC Markets
<https://mail.google.com/mail/u/0/#m_2981747377356445814_p18> By Alexis
Stenfors
<http://econpapers.repec.org/scripts/search.pf?aus=Alexis%20Stenfors>;
Lilian
Muchimba
<http://econpapers.repec.org/scripts/search.pf?aus=Lilian%20Muchimba>
------------------------------
1. Financial Intermediation and Financial Crises
<http://econpapers.repec.org/RePEc:ris:nobelp:2022_004>
By: Diamond, Douglas
<http://econpapers.repec.org/scripts/search.pf?aus=Diamond,%20Douglas>
(University
of Chicago)
Abstract: Nobel Lecture lecture slides
Keywords: Banking; Financial crises
JEL: E53 G21 G28
<http://econpapers.repec.org/scripts/search.pf?jel=E53%20G21%20G28>
Date: 2022–12–08
URL: http://d.repec.org/n?u=RePEc:ris:nobelp:2022_004&r=hpe
2. Multiple equilibria
<http://econpapers.repec.org/RePEc:ris:nobelp:2022_005>
By: Dybvig, Philip
<http://econpapers.repec.org/scripts/search.pf?aus=Dybvig,%20Philip>
(Washington
University)
Abstract: Nobel lecture presentation slides
Keywords: Banking; financial crisis
JEL: E53 G21 G28
<http://econpapers.repec.org/scripts/search.pf?jel=E53%20G21%20G28>
Date: 2022–12–08
URL: http://d.repec.org/n?u=RePEc:ris:nobelp:2022_005&r=hpe
3. The Economists and The Combination Laws: A Reappraisal
<http://econpapers.repec.org/RePEc:osf:socarx:uvfqa>
By: Hupfel, Simon
<http://econpapers.repec.org/scripts/search.pf?aus=Hupfel,%20Simon>
Abstract: The repeal of the British Combination Laws in 1824 is
generally considered by historians as the landmark of modern trade
unionism, and has been attributed to the contributions of classical
political economists. In the sole article that addressed this issue in the
field of the history of economic thought, William Grampp reached the
opposite conclusion, according to which the influence of the economists
(Ricardo, McCulloch, Malthus, Torrens and Senior) on repeal was actually
small. Resituating the debates over the Combination Laws in their political
context, we try to show, despite the relatively reduced volume of the
classical economists’ direct contributions, that the economists were
clearly favorable to the measure, and how “political economy” played a
significant role in the achievement of repeal. In doing so, we offer a
reflection on the methodology used by Grampp to study the influence of
economic ideas on political debates and public policy.
Date: 2022–12–13
URL: http://d.repec.org/n?u=RePEc:osf:socarx:uvfqa&r=hpe
4. On Some “New” Interpretations of Ricardo’s Principle of Comparative
Advantages <http://econpapers.repec.org/RePEc:ris:sraffa:0060>
By: Parrinello, Sergio
<http://econpapers.repec.org/scripts/search.pf?aus=Parrinello,%20Sergio>
(Sapienza
University of Rome)
Abstract: Different theories of international trade have originated from
Chapter VII “On Foreign Trade” of Ricardo’s Principles and particularly
from the interpretation of his numerical example of the gains from trade.
In this paper a relatively new interpretation of such example and the
resulting implications will be assessed in the light of Sraffa’s writings
(1930, 1951) and of the so-called Neo-Ricardian approach applied to the
theory of foreign trade. In particular, it will be reconsidered: i) the
analogy between the choice of interna-tional specialization and the choice
of techniques; ii) the conditions under which absolute cost advantages may
prevail over comparative advantages and affect the pattern of
inter-national trade and the delocalization of the national industries.
Keywords: David Ricardo; Comparative advantage; Gains from trade
JEL: B12 B17 F10
<http://econpapers.repec.org/scripts/search.pf?jel=B12%20B17%20F10>
Date: 2022–12–22
URL: http://d.repec.org/n?u=RePEc:ris:sraffa:0060&r=hpe
5. J.S.Mill, the American Civil War and Slavery
<http://econpapers.repec.org/RePEc:spa:wpaper:2022wpecon25>
By: Laura Valladao de Mattos
<http://econpapers.repec.org/scripts/search.pf?aus=Laura%20Valladao%20de%20Mattos>
Abstract: The outbreak of the American Civil War created important
divisions on the other side of the Atlantic. The majority of the English
public opinion supported the Confederates – a fact that J.S.Mill received
with indignation. Since its beginning, Mill believed that slavery was the
main reason for the conflict and understood that the outcome of this war
would determine, for good or evil, the destiny of this (odious) institution
in America. Thus, in the first years of the war, he strenuously tried to
alter the opinion of his fellow citizens, which he believed dishonored the
name of England. In the last years of the conflict - after the English
abandoned their initial position and when the victory of the Union was a
matter of time - Mill’s attention turned to what should be done after the
conflict was over. His main concern was guaranteeing that slavery would be
effectively extinguished, not only in the letter of the law. This paper
intends to analyze Mill’s writings during the decade of 1860 concerning
the American Civil War, the slave system, and the condition of the Black in
America. This material consists of essays, newspaper articles, and a
significant number of private letters he exchanged with English and
American correspondents on these subjects. Although this material is
fragmentary and heterogeneous, it sheds light on some interesting aspects
of Mill’s thought. It reveals, for instance, not only the importance that
the issue of slavery had for him but also the complex views he had of this
phenomenon and how to eliminate it – that involved philosophical,
economic, sociological, political, and above all, moral aspects Insert
Abstract here]
Keywords: J. S. Mill; American Civil War; slavery
JEL: B12 B31
<http://econpapers.repec.org/scripts/search.pf?jel=B12%20B31>
Date: 2022–12–14
URL: http://d.repec.org/n?u=RePEc:spa:wpaper:2022wpecon25&r=hpe
6. Families and Women in Alfred Marshall’s Analysis of Well-being and
Progress. <http://econpapers.repec.org/RePEc:ulp:sbbeta:2022-35>
By: Virginie Gouverneur
<http://econpapers.repec.org/scripts/search.pf?aus=Virginie%20Gouverneur>
Abstract: Some commentators state that Marshall conceptualizes the
well-being primarily in terms of the consumer’s surpluses, whose
interdependence with the moral character rests on the ability of markets to
produce their effects on character spontaneously. The purpose of the
article is to show that evolutionary faith is not really enough to remove
the tension between the economic and moral dimensions of Marshall’s
definition of the well-being. Marshall understands that progress would not
happen without assigning a peculiar role to families and women in
cultivating family affections as an essential means to secure the link
between these two dimensions. To prove this point, the article examines
several economic texts written before Marshall’s major economic book,
Principles of Economics, the first edition of which appeared in 1890. These
writings have received little consideration in the existing literature
about Marshall’s treatment of the role of women in a capitalist economy.
Yet, they prefigure and allow to better understanding the theory expounded
in Principles.
Keywords: Alfred Marshall, family environment, women’s role, well-being,
progress.
JEL: B13 I31
<http://econpapers.repec.org/scripts/search.pf?jel=B13%20I31>
Date: 2022
URL: http://d.repec.org/n?u=RePEc:ulp:sbbeta:2022-35&r=hpe
7. Review of “Scientific History: Experiments in History and Politics
from the Bolshevik Revolution to the End of the Cold War” by Elena Aronova
<http://econpapers.repec.org/RePEc:osf:socarx:2jf8p>
By: Klein, Ursula
<http://econpapers.repec.org/scripts/search.pf?aus=Klein,%20Ursula>
Abstract: Elena Aronova. Scientific History: Experiments in History and
Politics from the Bolshevik Revolution to the End of the Cold War. Chicago
and London: The University of Chicago Press 2021 (ISBN-13:
978-0-226-76138-1 (cloth), 978-0-226-76141-1 (e-book).
Date: 2022–12–13
URL: http://d.repec.org/n?u=RePEc:osf:socarx:2jf8p&r=hpe
8. Nothing new under the sun: The so-called "growth model perspective"
<http://econpapers.repec.org/RePEc:zbw:ipewps:1952022>
By: Amable, Bruno
<http://econpapers.repec.org/scripts/search.pf?aus=Amable,%20Bruno>
Abstract: Recent contributions in comparative political economy have
made much of the 'growth model perspective', presenting it as a way to
'rethink political economy'. This paper argues that the origins of the
growth model approach can be found in contributions by Michel Freyssenet
made in the framework of GERPISA (Groupe d'étude et de recherche permanent
sur l'industrie et les salariés de l'automobile) in the 1990s/2000. By
presenting the contributions and limitations of Freyssenet's approach, it
is possible to establish how contemporary growth model approaches fail to
establish a solid link between political economy and heterodox
macroeconomics. It appears that an approach that starts from the
differentiation of interests of social groups and takes into account the
autonomy of politics has more potential to achieve this task, allowing to
recover the inspiration of Kalecki's 1943 article on the political limits
to economic policy.
Keywords: French Theory of Régulation,growth models,accumulation
regimes,political economy
JEL: B52 P10
<http://econpapers.repec.org/scripts/search.pf?jel=B52%20P10>
Date: 2022
URL: http://d.repec.org/n?u=RePEc:zbw:ipewps:1952022&r=hpe
9. De l’Ecole Polytechnique et l’Ecole de la Régulation. Michel
Aglietta, 1959 – 1979.
<http://econpapers.repec.org/RePEc:ulp:sbbeta:2022-34>
By: Yamina Tadjeddine
<http://econpapers.repec.org/scripts/search.pf?aus=Yamina%20Tadjeddine>
Abstract: Ecole of Regulation emerged in France in the mid-1970s. The
two founding figures of this school are Michel Aglietta and Robert Boyer.
In this article, we propose to follow Aglietta's personal and professional
career between 1959 and 1976 to understand the genesis of regulation
theory. Aglietta's career is structured by three formative phases, each of
which is successively presented: student at the Ecole Polytechnique
(1959-1965), senior civil servant at the INSEE (1965-1970), doctoral
student (1970-1974). The Ecole de la Régulation is based on an original
epistemic composite: the time spent at the Ecole Polytechnique and the
programme division of the INSEE provided the macro-economic foundation, the
use of national accounting, the hypothetico-deductive methodology; the stay
at Harvard the American institutionalism; the personal affinities with
Marxism and the work of François Perroux. The methodology mixes formal
modelling from macroeconomics, historical materialism from Marxism, the use
of national accounting and finally historical data on organisations from
institutionalist heritage. We also highlight three ethical presupposition -
tolerant humanism, state benevolence and prescriptive positivism - that run
through Aglietta's scientific work and have their origins in the period
1959-1968, marked by the reconstruction of France after the Second World
War and the Algerian War. This work is based on numerous interviews, on the
analysis of published works and on the consultation of archives.
Keywords: Ecole de la Régulation, Michel Aglietta, French Planning,
History of economic though.
JEL: B5 <http://econpapers.repec.org/scripts/search.pf?jel=B5>
Date: 2022
URL: http://d.repec.org/n?u=RePEc:ulp:sbbeta:2022-34&r=hpe
10. Hereditarianism, Eugenics and American Social Science in the
Interwar Years: Meet the Carverians
<http://econpapers.repec.org/RePEc:osf:socarx:7t59c>
By: Fiorito, Luca
<http://econpapers.repec.org/scripts/search.pf?aus=Fiorito,%20Luca>; Erasmo,
Valentina
<http://econpapers.repec.org/scripts/search.pf?aus=Erasmo,%20Valentina>
Abstract: The aim of this paper is to document Carver’s influence as a
teacher and to shed further light on Harvard’s role as the “brain trust” of
American eugenics (Fiorito 2019). On the same time, in more general terms,
what follow adds to our general understanding of the extent to which
biological considerations continued to permeate American social science
well after the first two decades of the last century, the period which
marked the "golden age" of eugenics (Leonard 2016).
Date: 2022–12–13
URL: http://d.repec.org/n?u=RePEc:osf:socarx:7t59c&r=hpe
11. Varieties of demand and growth regimes: Post-Keynesian foundations
<http://econpapers.repec.org/RePEc:zbw:ipewps:1962022>
By: Hein, Eckhard
<http://econpapers.repec.org/scripts/search.pf?aus=Hein,%20Eckhard>
Abstract: We review post-Keynesian contributions to demand and growth
regime analysis. First, we distinguish the Kalecki-Steindl approach and the
Sraffian supermultiplier approach as relevant theoretical foundations for
demand and growth regime research, with investment-driven and
distribution-led growth in the focus of the former and autonomous
demand-led growth in the latter. Based on this, we review different ways of
analysing the co-existence of demand and growth regimes in the current
period of neoliberal and finance-dominated capitalism. We distinguish,
first, a basic national income and financial accounting decomposition
approach, second, a Sraffian supermultiplier inspired growth decomposition
approach, and, third, several lenses looking at growth drivers. We argue
that these three levels of analysis are, in principle, not mutually
exclusive nor even contradictory, but that they rather complement each
other. We conclude that, in particular the PK analysis of growth drivers
provides several systematic links with comparative and international
political economy approaches, when it comes to the introduction of the
political economy dimension (social blocs, growth coalitions, changes in
institutions favouring certain type of re-distribution and economic
policies, etc.), while the national income and financial accounting, as
well as the Sraffian supermultiplier growth accounting decomposition
approaches provide the consistent macroeconomic foundations for such
syntheses.
Keywords: Demand and growth regimes,post-Keynesian
economics,Kalecki-Steindl models,Sraffian supermultiplier
models,wage-/profit-led regimes,finance-led/finance-burdened
regimes,debt-led private demand boom regimes,export-led regimes,domestic
demand-led regimes
JEL: B59 E02 E11 E12 E65 P51
<http://econpapers.repec.org/scripts/search.pf?jel=B59%20E02%20E11%20E12%20E65%20P51>
Date: 2022
URL: http://d.repec.org/n?u=RePEc:zbw:ipewps:1962022&r=hpe
12. Development of Grounded Theory in Social Sciences: A Qualitative
Approach <http://econpapers.repec.org/RePEc:pra:mprapa:115552>
By: Mohajan, Devajit
<http://econpapers.repec.org/scripts/search.pf?aus=Mohajan,%20Devajit>;
Mohajan,
Haradhan
<http://econpapers.repec.org/scripts/search.pf?aus=Mohajan,%20Haradhan>
Abstract: Grounded theory (GT) is a general research method that
provides the efficient generation of theory from data, which are collected
by a strong, sound, and fair research method. It is an inductive
methodology that systematically collects and analyzes data for developing
theory on human behavior in social welfare perspectives. It is considered
as one of the most popular qualitative research methodologies in the world.
It is originally developed by two American sociologists Barney Galland
Glaser and Anselm Leonard Strauss in 1967 through the publication of their
revolutionary book “The Discovery of Grounded Theory”. It emphasizes the
importance of developing an understanding of human behavior through a
process of discovery. Grounded theory has originated in sociology, and at
present it has become a key methodological setting in a wide range of other
disciplines, such as in nursing, physiotherapy, healthcare, education,
anthropology, psychology, management, information systems, software
engineering, etc. It is useful both for expert and novice researchers to
generate new explanatory theories. This article tries to discuss grounded
theory methodology through the discussion of its origin and development,
basic principles, characteristics, advantages and disadvantages, and its
usefulness in social science researches for qualitative analysis.
Keywords: Grounded theory, qualitative research, Glaser, Strauss
JEL: A13 A14 I24 I31 J16
<http://econpapers.repec.org/scripts/search.pf?jel=A13%20A14%20I24%20I31%20J16>
Date: 2022–10–05
URL: http://d.repec.org/n?u=RePEc:pra:mprapa:115552&r=hpe
13. Unbreakable: A beliefs-based theory of rule-breaking in the
entrepreneurial context
<http://econpapers.repec.org/RePEc:osf:socarx:jcfn2>
By: Zhang, Senlin
<http://econpapers.repec.org/scripts/search.pf?aus=Zhang,%20Senlin>;
O'Connor,
Peter
<http://econpapers.repec.org/scripts/search.pf?aus=O%27Connor,%20Peter>;
Gardiner,
Elliroma
<http://econpapers.repec.org/scripts/search.pf?aus=Gardiner,%20Elliroma>
Abstract: ABSTRACT Academic research largely supports the popular notion
that successful entrepreneurs are rule-breakers; that is, individuals who
do not follow society's rules and often create their own. However, despite
an abundance of research on “rule-breakers”, little is known about the
nature of rule-breaking in the entrepreneurial context. What, for example,
is rule-breaking in the entrepreneurial context, what causes it, and how
does it benefit entrepreneurs? Drawing heavily from theories in cognitive
and moral psychology, we develop a conceptual model of rule-breaking in the
entrepreneurial context that centres around a novel psychological cognitive
construct that we term constructive rule beliefs. We argue that individuals
high in constructive rule beliefs are more open than those low in
constructive rule beliefs to breaking rules in the presence of various
contextual rule-breaking triggers. We also argue that rule-breaking can
benefit entrepreneurs and suggest that entrepreneurs with a paradox mindset
(i.e., the tendency to accept and embrace competing demands) will reliably
benefit from rule-breaking. We discuss the necessity for rule-breaking in
the entrepreneurial context and outline several implications of our model
for entrepreneurs and policymakers.
Date: 2022–12–09
URL: http://d.repec.org/n?u=RePEc:osf:socarx:jcfn2&r=hpe
14. Elements of Intellectuality in Decision Making
<http://econpapers.repec.org/RePEc:pra:mprapa:115666>
By: Chatterjee, Sidharta
<http://econpapers.repec.org/scripts/search.pf?aus=Chatterjee,%20Sidharta>
Abstract: This brief research note stresses the role intellectual and
cognitive elements play in critical thinking and decision-making. Critical
thinking skills are highly desirable among young adults and students,
employees, teachers, and creative artists. The various elements of the
functional brain that contribute to critical thinking are those that define
our complex cognitive system. Critical thinking, like any other
intellectual process, necessitates the use of focused attention,
information processing, and reasoning abilities. It is an essential skill
that has important applications in decision-making and in various domains
of creative endeavors. A competent critical thinker is able to take a more
rational approach to decision making. This paper highlights these issues
and urges individuals to make space for critical thinking, which is so much
in demand in these fast-paced digital environments.
Keywords: Critical thinking, decision-making, rational choices,
Intellectual process
JEL: D7 O34 <http://econpapers.repec.org/scripts/search.pf?jel=D7%20O34>
Date: 2022–12–15
URL: http://d.repec.org/n?u=RePEc:pra:mprapa:115666&r=hpe
15. Hands, hearts and hybrids: economic organization, individual
motivation and public benefit
<http://econpapers.repec.org/RePEc:ehl:lserod:117335>
By: Le Grand, Julian
<http://econpapers.repec.org/scripts/search.pf?aus=Le%20Grand,%20Julian>
; Roberts, Jonathan
<http://econpapers.repec.org/scripts/search.pf?aus=Roberts,%20Jonathan>
Abstract: Should policy makers rely upon firms motivated by profit and
guided by the invisible hand of the market to promote public benefit or
upon government agencies or nonprofits motivated by the compassionate
heart? In this article we examine how the motivational assumptions implicit
in these forms of economic organisation impact on their ability to promote
the public good in key areas of the economy. We argue that in many
circumstances it would be better to for policy makers to work with hybrid
organisations: organisations that aim for both social and economic returns
and whose stakeholders display the true complexity of individual motivation.
Keywords: hybrid; social enterprise; purpose-driven corporation;
profit-maximisation; motivation
JEL: J1 <http://econpapers.repec.org/scripts/search.pf?jel=J1>
Date: 2021–03–05
URL: http://d.repec.org/n?u=RePEc:ehl:lserod:117335&r=hpe
16. The Anatomy of Three Scandals: Conspiracies, Beauty Contests and
Sabotage in OTC Markets
<http://econpapers.repec.org/RePEc:pbs:ecofin:2022-08>
By: Alexis Stenfors
<http://econpapers.repec.org/scripts/search.pf?aus=Alexis%20Stenfors>
(University
of Portsmouth); Lilian Muchimba
<http://econpapers.repec.org/scripts/search.pf?aus=Lilian%20Muchimba>
(University
of Portsmouth)
Abstract: Until the Great Recession, the largely unregulated
over-the-counter (OTC) markets had received little attention from
compliance officers, regulators, and lawmakers. Perhaps more important than
the lack of regulatory framework as such, the markets were widely perceived
to be sufficiently large, liquid, efficient and competitive to withstand
manipulative and collusive attempts by traders and banks. However, the
status quo was radically altered in 2012, when it was revealed that major
international banks had systematically manipulated the world’s most widely
used interest rate benchmark. The ‘LIBOR scandal’ was quickly followed by a
‘Forex scandal’ and the discovery of grave misconduct in a range of other
OTC benchmarks and markets. At the time of writing, government bonds traded
on electronic trading platforms are under particular scrutiny. This paper
draws on the concepts of conspiracies (Smith 1776), beauty contests (Keynes
1936) and sabotage (Veblen 1921) to reflect on why it took so long for the
scandals to be discovered.
Keywords: banks, beauty contest, conspiracies, financial regulation,
LIBOR, manipulation, OTC markets, sabotage
JEL: E43 F31 G14 G15 G18
<http://econpapers.repec.org/scripts/search.pf?jel=E43%20F31%20G14%20G15%20G18>
Date: 2022–12–15
URL: http://d.repec.org/n?u=RePEc:pbs:ecofin:2022-08&r=hpe
------------------------------
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