After the Great Complacence

Ewald Engelen, Ismail Ertürk, Julie Froud, Sukhdev Johal, Adam Leaver, Michael Moran, Adriana Nilsson and Karel Williams

in After the Great Complacence

Published in print September 2011 | ISBN: 9780199589081
Published online January 2012 | e-ISBN: 9780191731150 | DOI:
After the Great Complacence

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The chapter makes the case for framing the crisis as an elite debacle. The first section focuses on the informal pre-2007 elite story about the benefits of financial innovation, told in the period of what we call the Great Complacence when central bankers, regulators, and senior economists repeated the same reassuring but ill-founded stories about the benefits of financial innovation and the ‘Great Moderation’. The second section justifies the term debacle by presenting some political arithmetic about the form and nature of the catastrophe after 2008 and the wider consequences of the crisis and bail out. The chapter argues that we need a new and different politico-cultural approach to present-day capitalism if we are to understand the origins of the debacle in the operations of unregulated finance and the subsequent frustration of reform.

Keywords: Great Complacence; Great Moderation; financial crisis; elite stories; financial innovation; financial reform; econocrats; technocrats; debacle; Ben Bernanke

Chapter.  12119 words. 

Subjects: Financial Institutions and Services

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