Financial crises are severely destructive events. The Global Financial Crisis of 2008 sent sovereign states into a spiral of political unrest and caused millions of people to lose their homes, their jobs, their life savings, their health, and in many cases even their lives. But financial crises are not unavoidable natural events. They are the consequences of intentional human behaviour. To be more precise, they are unfortunate side-effects of everyday financial practices. If these practices (...) are not carefully monitored and reined in, they can, in words borrowed from Warren Buffet, become “weapons of mass destruction”. -/- This thesis is an attempt at an interdisciplinary investigation of financial crises. It combines arguments from normative ethics, political philosophy, economics and law in order to discuss three questions at the heart of the public debate on financial crises: “Who is responsible for bringing about financial crises?”; “What precisely is wrong with practices that contribute to the risk of financial crises?”, and “What can be done to mitigate the risk of financial crises?” -/- A few key insights offered in this thesis are as follows: First, financial crises do not emerge because of the misbehaviour and greed of a few “bad apples”, rather, they are the result of “business as usual” within financial markets. Second, there are strong reasons for states to regulate financial markets heavily in order to prevent severe harm. Third, there are few good reasons to believe that consumers can be held morally responsible for contributing to financial crises. (shrink)

This book approaches the question of the relation between financial crises and earnings management from two philosophical perspectives: positivism and critical realism. The results obtained using the positivist approach indicate that financial crises tend to have no consistent effect on earnings quality since managers’ earnings behavior does not differ from the pre-crisis to the crisis period. The author accordingly argues against the existence of a causal law based on a constant conjunction model and concludes that (...) class='Hi'>financial crises cannot be seen as the cause of earnings management. The critical realism perspective, on the other hand, casts light on managers’ reasons for acting like an earnings manager; in conjunction with the more traditional positivist approach, it assists in refuting the idea of financial crises as a generative mechanism for earnings management. The author concludes by exploring other structures at work that might be responsible for earnings management. This book will be of interest to both academics and a wide range of professionals. (shrink)

This chapter discusses the virtue ethical, consequentialist, and contractualist perspectives on bank contributions to financial crises. It begins from the observation that a central wrong-making feature of bank contributions is simply that they constitute causal contributions to a collective harm. Both the virtue ethical and the consequentialist perspective can capture this wrong-making feature, but each perspective comes with significant drawbacks. The virtue ethical perspective is likely to consider too few bank contributions as wrong, while the consequentialist perspective considers (...) bank contributions permissible insofar as the costs imposed on to victims of financial crises are offset via benefits that accrue to some other party. By avoiding the issues of both the virtue ethical and the consequentialist perspective, the contractualist perspective is able to capture the central wrong-making feature of bank contributions in a much more satisfying manner than its rivals. (shrink)

During the global financial crisis (GFC) of 2007–2009 and the currentCovid-19 debacle, central banks acted quickly, boldly, and effectively. The paper argues that they did so thanks to the lessons learned from the past financial crises, which provided them with opportunities to reconsider their previous beliefs. A case in point is the banking crisis in the United States during the Great Depression of the 1930s that taught central banks to act rapidly and decisively in order to prevent (...) an initial liquidity crisis from escalating into a solvency crisis leading to bankruptcies of banks with potentially disastrous consequences for the entire economy. The paper revisits the consequences of the currency crises of the 1990s, which transformed exchange rate regimes across the world: the EMS one of 1992–1993 that accelerated the launch of the euro, and the Asian one of 1997–1998 resulted in the proliferation of floating exchange rates in emerging economies. (shrink)

Soon after the 2008 financial crisis, Gillian Tett, an anthropologist and the US Managing Editor of the Financial Times, suggested that regulators’ and practitioners’ inability to anticipate and respond to deep problems in the financial industry could be traced back to what she called “silo thinking,” wherein experts in one area know nothing about the methods and research of other areas. As she put it, “the essential challenges for investors today…”—and, we might add, for regulators and academics—is (...) “to understand the micro-details of the silos, and see how all the macro-pieces add up”.In years since, many researchers in many fields have sought to identify causes of the... (shrink)

This chapter argues for aggressive securities taxation to curb short-term, speculative capital flows that partly cause financial crises. Much as with any potentially beneficial but highly dangerous activity, short-term speculative markets fairly impose heightened risks of financial crises only if they can be embedded within institutions that reliably compensate for the harm that crises do. Because reliable compensatory institutions are not established and in any case are arguably beyond the regulatory powers of governments, the dangerous (...) activity must in fairness be curbed, even at great economic opportunity costs. (shrink)

The credit crises experienced in the US in year 2008 is labeled as perhaps the most significant crises since the great depression. The roots of the crises were found in the default of the sub-prime mortgages and the failure occurred in both the US and the UK. Due to the integrated nature of international financial systems the spillover impacted many countries as the economies in Asia and Europe were purchasers of the sub-prime mortgages that originated in (...) both UK and US. The impact of the credit crises in Canada is of unique importance due to the close proximity to US, and both the US and Canada being of great strategic importance to each other as well as one of the largest trading partners.Even though the international financial credit crises adversely impacted many countries, the evidence that has come across recent years point towards the conclusion that Canada was able to weather the crises much better than many other countries. (shrink)

Volume 30, Issue 6, September 2025, Page 784-785.

The aim of this article is to provide a discussion of scholarly ‘crisis of modernity’ discourses that have developed in the field of social philosophy. Re-visiting past and present discourses can be illuminating in at least three ways: it can reveal the broader picture of the present financialized and technologized world and the rise of financial technologies; it can provide scholars with new vocabularies, concepts, and metaphors to comprehend present-day phenomena and developments; and it can reveal the variety of (...) commitments that are possible, today, too. This article starts with a discussion of the original ‘crisis of modernity’ discourses, in which the clashing arguments of Comte and Tocqueville are featured, and a discussion of a second ‘crisis of modernity’ that developed in the context of the ‘Great Depression.’ A third ‘crisis of modernity’ discourse emerged in the wake of the financial crises of the 1970s. Such crises are still ongoing and discussed within the boundaries of the third ‘crisis of modernity’ discourse. How financial technologies do and do not fit within this third discourse is discussed in the remainder of this article. (shrink)

What started as a sub-prime mortgage crisis in the US in 2007 snowballed into global recession soon after. It has turned itself into an economic crisis, if not a sociopolitical one. While the period covering 2014–19 was one of return to the growth trajectory, albeit of the new normal variety, there were various headwinds affecting growth—the US-China trade war, initial confusing signals of Brexit finally culminating in the UK’s exit from the European Union—to name a few. In 2020, the world (...) witnessed the emergence of the COVID-19 pandemic that culminated in a once-in-a-century type of human tragedy and a return to more aggressive fiscal and monetary stimuli. This book looks at the impact of the global crisis on fiscal positions and fiscal implications of the measures undertaken to deal with the situation. The authors explore cross-country experiences with special focus on the euro area economies and India. Analysing the issues relating to the interaction between monetary, fiscal, and financial policies, with emphasis on public debt management, sovereign debt restructuring, taxation, and regulation of the financial sector and sub-national finance, they present the emerging challenges. Recognizing the inter-linkages between monetary, financial, and fiscal policies against the backdrop of the global crisis, this book offers an understanding of possible institutional arrangements for the future. (shrink)

The early twenty-first century will be remembered as a time of constant crisis. These crises have created repeated global states of emergency, revealing gaps, and inadequacies in social protection systems worldwide. Alongside these crises, and as a response to them, social protection has grown into a paradigm of global governance. This development is also noticeable in the practices of the World Bank and the International Monetary Fund. At the heart of all social protection policies is the protection of (...) vulnerable groups. Crises create new vulnerabilities and deteriorate the situation of those already vulnerable. The article explores the social protection endorsement of the World Bank and the International Monetary Fund through the financial crisis and the COVID-19 pandemic. It shows how crises have fueled their social protection endorsement, making protection of vulnerable groups a central outspoken policy preference. The article asks whether the policies adopted in response to the pandemic confirm their social protection commitment and what challenges remain. (shrink)

In a crisis, managers are confronted with a dilemma between their ethical responsibility to respond to victims and their fiduciary responsibility to protect shareholder value. In this study, we use a unique and comprehensive dataset of 223 non-financial crises between 1983 and 2013 to investigate how corporate apologies affect stock prices. Our empirical evidence shows that the stock price response from apologizing depends on the firm’s level of responsibility for the crisis. We find that to protect shareholder value, (...) management needs to match its formal response strategy with the degree of its responsibility for the crisis. Further, failing to match the proper response is harmful to shareholders: Both apologizing when the firm is not directly responsible for the crisis and failing to apologize when the firm is directly responsible reduce shareholder wealth. However, apologizing for a crisis when the firm is directly responsible mitigates losses to shareholder value that arise because of the crisis, as does refraining from apologizing when the firm is not directly responsible. (shrink)

This book discusses the relationship between democracy and the financial order from various legal perspectives. Each of the nine contributions adopts a unique perspective on the legal and political challenges brought to the fore by the Global Financial Crisis. This crisis and the ensuing sovereign debt crisis in Europe are only the latest in a long series of financial crises around the globe in recent decades. By their very existence, but also as a result of the (...) political turmoil they have created, these financial crises testify to the well-known tensions between democracy and a market-based economic and financial order. However, what is missing in this debate is an analysis of the role of law for reconciling democracy with a market-based financial order. To fill this lacuna, the book focuses on the controversy surrounding the concept of law, thereby adding another variable to the debate on the relation between democracy and capitalism. Each chapter addresses the concept of law from a particular theoretical angle, be it a full-grown legal theory or an approach in political economy that has a particular view of the law. (shrink)

In this topical book, Boudewijn de Bruin examines the ethical 'blind spots' that lay at the heart of the global financial crisis. He argues that the most important moral problem in finance is not the 'greed is good' culture, but rather the epistemic shortcomings of bankers, clients, rating agencies and regulators. Drawing on insights from economics, psychology and philosophy, de Bruin develops a novel theory of epistemic virtue and applies it to racist and sexist lending practices, subprime mortgages, CEO (...) hubris, the Madoff scandal, professionalism in accountancy and regulatory outsourcing of epistemic responsibility. With its multidisciplinary reach, Ethics and the Global Financial Crisis will appeal to scholars working in philosophy, business ethics, economics, psychology and the sociology of finance. The many concrete examples and case studies mean that this book will also prove useful to policy-makers and regulators. (shrink)

Financial crises have become an all-too-common occurrence over the past twenty years, largely as a result of changes in finance brought about by increasing internationalization and integration. As domestic financial systems and economies become more interlinked, weaknesses can significantly impact not only individual economies but also markets, financial intermediaries and economies around the world. This volume addresses the twin objectives of financial development in the context of financial stability and the role of law in (...) supporting both. Financial stability (frequently seen as the avoidance of financial crisis) has become an objective of the international financial architecture as well as individual economies and central banks. At the same time, financial development is now seen to play an important role in economic growth. In both financial stability and financial development, law and related institutions have a central role. (shrink)

Product-harm crises can trigger product recalls or product discards, which is very likely to cause secondary pollution to the environment. Also, these crises may harm customers’ health and threaten firms’ survival. To foster low-carbon economy and green development in such complex systems, this paper studies the internal mechanism of the product crisis and its impact on the firm value. It proposes a two-stage model to avoid the endogeneity of product-harm crises. In the first stage, this paper assesses (...) the effect of firms’ leverage on their capacity to produce higher quality products. In the second stage, this paper conducts the impact of these crises on stock prices. Then, it depicts the financial effects of product-harm crises over time, and analyzes the differences of such effects based on brand equity. Results show that book leverage can positively impact firms’ capacity to produce high-quality products. In addition, the market’s response to product-harm crises is significant at 1% level, and with the increase in severity, the market reaction is more prominent. Furthermore, its negative effect is persistent for a firm experiencing a severe crisis. Luckily, brand equity can mitigate this negative impact. These findings provide some ways to improve product performance and firm value in the green context. (shrink)

The Global Financial Crisis is acknowledged to be the most severe economic downturn since the 1930s, and one that is unique in its underlying causes, its scope, and its wider social, political and economic implications. This volume explores some of the ethical issues that it has raised.

A product harm crisis undermines a firm’s reputation as well as its managers’ career outlook. To shake off the stigmatization resulting from the PHC and regain a firm’s legitimacy among stakeholders, managers usually face an ethical dilemma as they choose to be transparent about the crisis’ financial implications or to obfuscate them to neutralize the negative impact of the PHC. We find evidence that managers engage in income-increasing earnings management when their firms experience PHCs. Moreover, while income-increasing earnings management (...) in PHCs reduces the likelihood of customer loss and CEO forced turnover in the short run, such behavior can be deemed opportunistic and unethical as it carries long-run negative consequences in terms of a higher likelihood of accounting restatement and weaker future operating performance. Finally, managers in firms that are subject to stricter external monitoring and managers in firms with proactive ethical policies are less likely to engage in upward earnings management in PHCs. (shrink)

The ongoing series of global financial crises offers some important philosophical lessons and insights for educators. The epistemological lesson is stark: we should beware of certainty and all claims to it. Were the disposition of generic skepticism in place at all levels of schooling, then the intellectual rigidity that has characterized economics as a “discipline” would be balanced by demands to consider possible alternatives. The ethical lessons to be learned include ensuring that ethics, as a form of rigorous (...) but openended inquiry into key questions about the kind of world in which we want to live, be included in every classroom and curriculum. At the center of this inquiry are relationships, most notably those between and among individual persons, on the one hand, and those between persons and the groups to which they belong and on which they are often said to depend, on the other. Such relationships also have an aesthetic dimension, in terms of their place in building, not just an ethically better world, but a more wholesome, integrated and harmonious world. (shrink)

The paper investigates the distinctly Chinese intertwining of expertise and state & financial capital to enrich the current understanding of neoliberalism as a hegemonic governing rationale. Since the summer of 2015, China has been experiencing one of its most severe financial crises since the adoption of a ‘socialist market economy’ in 1978. However, globally circulating narratives have failed to look beyond a Western-centric corollary, rehashing a critique of the Chinese one-party system and its lack of a ‘genuine’ (...) free market. By exploring the specific genealogy of Chinese capitalism, and the distinctive Chinese financial-market structure, the article will show how the scientific authority of experts formulated amongst neoliberal thinkers never permeated the Chinese idea of knowledge. In the Chinese variety of financial capitalism, expertise is seen to lie not so much in the wisdom of individual experts as in their socio-political support, which legitimises their economic interventions. (shrink)

Neoliberalism and financialization are not synonymous developments. Financialized nations are directed by particularly financialized epistemologies, cultures, and practices, not only neoliberal ones. In examining the financialization of the UK economy since the mid-1970s, this study discovers a socio-economic shift beyond the broad transition from Keynesianism towards free-market fundamentalism. Economic developments were guided by the very particular economic paradigms, discursive practices, and financial devices of the City of London, as financial elites became influential in the Thatcher governments. Five epistemological (...) elements specific to finance are discussed: the creation of money in financial markets, the transactional focus of finance, the centrality of financial markets to economic management, the orthodoxy of shareholder value, and the intensely micro-economic approach to financial calculation. Identifying these distinctions creates new possibilities for understanding financialization, elites, and the neoliberal condition that brought about both the financial crash of 2007–8 and the political and economic crises that have followed. (shrink)

Financial crises, characterised by rapid rises in security prices which push valuations beyond fundamental value, suggest that investors are irrational. This paper interrogates how we should understand investors’ behaviour. Central to deciding whether investors process information without error is understanding what information they are responding to. This paper analyses the information relevant to investor decision making and its implications for judgements about rationality. It finds that different investors can use different sorts of information and that, consequently, deciding when (...) investors fall short in their reasoning process is difficult. It argues for including social factors in the set of information relevant for investment decision making. Until we know what information influenced an investor’s decision, it is difficult to decide whether that investor was processing information correctly. Agnosticism about rationality is defended. (shrink)

This paper argues that some of the major theories in current business ethics fail to provide an adequate account of moral responsibility for the creation of systemic financial risk. Using the trading of credit default swaps (CDS) during the 2008 financial crisis as a case study, I will formulate three challenges that these theories must address: the problem of risk imposition, the problem of unstructured collective harm and the problem of limited knowledge. These challenges will be used to (...) work out key shortcomings of stakeholder approaches and Integrative Social Contracts Theory. I will argue that pluralist connection models used in political theory can help to overcome these shortcomings. Adopting an approach based on these models shows that financial institutions incur obligations in five main areas: managing their own risk profile; remedying some of the harms caused by financial crises; supporting the development of better epistemic methods; curbing the transmission and amplification of initial losses; and instigating structural reforms. (shrink)

The crises of neo-liberalism, modalities of revolt and adaptability The aim of the article is to locate the current crisis within the history of neo-liberalism with its successive crises. The authors point to the fact that the crisis is the latest in a series of financial and economic crises, to which must be added energy and food crises. The article analyses the social effects of neo-liberalism by way of its return to a logic focused on (...) the production of absolute surplus-value, following the revolt of the financial bourgeoisie against the social State. It concludes with an examination of the effects of the various forms of resistance to neo-liberalism upon the modes of legitimation that are in operation. Focusing in particular on the situation in France, the article argues that the reactions to the crisis, between revolt and resignation, are to be explained by way of the structural effects of neo-liberalism and in terms of the crisis of legitimation now affecting it. (shrink)

Sparked by the conjunction of food, fuel, and financial crises, there has been an increasing awareness in recent years of the scarce and finite character of natural resources. Productive resources such as agricultural land have been touted by financial actors—such as merchant banks, pension funds, and investment companies—as providing the basis for a range of new “alternative” financial asset classes and products. While the drivers, motives, and rationales behind the increasing interest of turning farmland into a (...) financial asset class have been traced by a number of scholars, the interpretations of, and interactions with, financial actors at the community level have received less attention. Based on qualitative research in rural Australia, this paper reveals the grounds on which finance-backed investments have been accepted and accommodated by communities in rural Australia and delineates the reasons that have led to feelings of unease or refusal. The paper thereby demonstrates that the financialization of farmland is neither abstract nor one-sided but rather a multidimensional process that not only includes financial actors but also the impacted rural populations in various ways. Positioning the activities of financial actors in Australia within the emerging research on the financialization of farmland, the paper endorses context-sensitive analyses to better interpret these recent transformations of the agri-food system. (shrink)

The crisis of 2008–2009 has been viewed primarily as a financial one, which has spilled over into the economy more generally. I want to argue that there is a much deeper crisis, of which the present one is a result. The deeper crisis is political: more specifically, it is a crisis in the ideology and social ethos of the American people. I refer to what has happened to the thinking of United States citizens since the Second World War, and (...) the dangers that that transformation entails for world peace and cooperation—let alone the creation of an economic regime in which deep financial crises do not occur. Short of a change in the ideology of a many of its citizens, I do not believe the United States can succeed in preventing a repeat performance, perhaps many encores, which become increasingly severe. (shrink)

This paper traces the philosophical and ethical development of debt and interest from ancient condemnation to modern acceptance, revealing how historical critiques can illuminate contemporary financial crises. Beginning with the idea of money as “unnatural” when it breeds itself, and drawing from classical and medieval prohibitions on usury, it follows key shifts in moral reasoning through the Reformation and Enlightenment. These conceptual transformations are placed in dialogue with modern critiques of debt, particularly when vital needs such as education (...) and healthcare become subject to interest-bearing lending. Through a historical-philosophical lens, the paper argues that early moral safeguards, once intended to prevent exploitative lending, have been gradually dismantled, contributing to present-day debt burdens. It concludes by suggesting that reviving selected historical boundaries, such as interest caps or protections for existential loans, could inform financial reforms that better reflect principles of justice, dignity, and human flourishing. (shrink)

We examine the politics of financial crisis response in Japan and the United States. Many existing accounts of Japan's of the 1990s have emphasized Japan-specific factors, such as structural problems, policy errors, and political dysfunction. We argue that Japan may have been subject to a form of first-mover disadvantage. Like innovation in the private sector, developing effective solutions to novel policy problems requires a messy process of discovery, experimentation, and repeated failure. Much as late-industrializing countries adapted the methods and (...) technologies of early developers, second-movers can apply effective policies demonstrated by first-movers in a more targeted, efficient, and rapid manner. We show that the behavior of Japan and the United States during their respective financial crises is broadly consistent with this theory. In addition, policy adoption in the United States most clearly reflected lessons from Japan in areas where the lessons were considered clear and implementation was less politicized. (shrink)

Since the declaration of financial crisis in 2008, and the imposition of austerity measures in 2011, Greece has become an epicentre—or a “laboratory”—of multiple, successively declared crises, including the humanitarian crisis induced by the devastating effects of neoliberal structural adjustment policies. In this paper, I approach the explosion of crisis discourse as a medium for ideological negotiations of nation-state borders in relation to a continental project of securitisation. I suggest that ‘crisis’ functions as a lexicon through which sovereignty (...) can be reasserted in relation to supranational institutional interference in ostensibly democratic governance. Specifically, I examine how the refugee crisis and the debt crisis converge in nationalised space in Greece; that is, how in state discourse, ‘crises’ serve as a conduit through which the borders of an embattled nation are redrawn and hardened against threats from a political space conceptualised as ‘outside’ the nation. My point of entry is the declaration of the Greek government by the end of the summer of 2015, that it was “experiencing a crisis within a crisis,” dually victimised by migration ‘flows’ and failed European solidarity in a context of ongoing austerity measures required by its institutional lenders. The figure of ‘a crisis within a crisis’ functioned to delineate the boundaries of national space and time and to distinguish the normative victims of what are seen as distinct, if overlapping political phenomena (debt and migration), from those who parasitically share in, or indeed by their very illicit presence cause or contribute to the suffering of the national subject. If the global economic crisis had already been made ‘ours’ by being constructed as a problem inherent in the national economy, the global war on migration became reinvented as 'Europe’s crisis,’ and then ‘Greece’s.’ The nationalisation of ‘crisis’ then, has a triple function: first, to conceal the systemic and structural underpinnings of violent processes of dispossession and displacement; second, to authorise the imposition of regimes of management and securitisation; and third, to reify borders that simultaneously fortify the agencies of state sovereignties while containing those of embodied human beings. The figure of ‘nesting crises’—‘a crisis within a crisis’—emerges through gestures of ownership or territorialisation of crisis: that is, in the conditions under which, affectively and politically a ‘crisis’ becomes ‘ours’ rather than ‘theirs’ and, indeed, constitutes the ‘we’ and the ‘they.’ ‘Nesting crises’ discourse can be read as a vocabulary through which national sovereignty is reasserted and national unity reconstituted. (shrink)

Consumer driven and globally competitive financial markets are crucial for the future prosperity of the Finnish society (Laitamäki, Lehti and Paasio 1996). The largest transfer of wealth in history is currently taking place as Baby Boomers (born 1946-1964) prepare for their retirement and inherit the assets of the previous generation. Due to cognitive limitations and emotional biases these consumers don’t always make rational decisions with financial services. This conceptual study addresses irrational financial consumer behavior and its impact (...) on the Finnish business and society. The study focuses on two research questions: 1) What type of behavioral finance concepts explain irrational consumer behavior? 2) What are the implications of these behaviors for the Finnish business and society? The purpose of this study is to assist individual consumers, business leaders and policy makers in making better financial services related decisions in Finland. The need for better decisions has been illustrated during Finnish and international financial crises including the US sub-prime loan turmoil in 2008. (shrink)

This paper assesses the current world economic crisis in terms of crucial transformations in global capitalism throughout the neoliberal period. It argues that intense social and spatial restructuring after the crises of 1973–82 produced a new wave of capitalist expansion that began to exhaust itself in the late-1990s. Since that time, new problems of overaccumulation and declining profitability have plagued global capitalism. Interconnected with these problems are contradictions related to a mutation in the form of world-money, as a result (...) of its complete de-linking from gold after 1971, which stimulated a fantastic growth in financial instruments and transactions, and generated a proliferation of esoteric 'fictitious capitals' whose collapse is wreaking havoc across world financial markets. The intersection between general conditions of overaccumulation and a crisis in financial structures specific to neoliberalism has now produced a deep world-slump. Inherent in this crisis is a breakdown in forms of value-measurement that is throwing up intense struggles between the capitalist value-form and popular life-values, the latter of which comprise the grounds for any real renewal of the socialist Left. (shrink)

This contribution considers the potential of critical realism to illuminate the nature of crises, crisis management, and crisis lessons. After reviewing key aspects of critical realism in general, the analysis notes the challenge of developing critical realism in particular by identifying appropriate entry-points and standpoints for the analysis of specific explananda. It then provides a general critical realist account of the nature of crises in the social world and of learning in, about, and from crisis. A key concept (...) here is symptomatology — the exploration of the contingently necessary relation between actual symptoms and underlying causal mechanisms. This is related in turn to the crucial distinction between scientifically adequate explanations of crisis and conjuncturally ‘correct’ readings of the potential for transformative action in the face of crisis. This has important bearings on the emancipatory contribution of critical realism in the context of a continuing critique of ideology and domination. The article then provides particular critical realist accounts of the abstract possibility of crisis in the capitalist mode of production and its concrete actualization in the complex, overdetermined cases of the North Atlantic Financial Crisis and the Eurozone Crisis. It ends with some general remarks on the potential of crisis as an entry-point into the analysis of the contradictory nature of social structures. (shrink)

In the present world order unbridled forces of free market capitalism are frequently cited for much of the social injustice, inequity, and disparity of wealth between the rich and the poor. Although history''s verdict in favor of the free markets could hardly be harsher or clearer, it is clear that after the initial wave of triumph, the free market paradigm has developed some cracks in its façade. What marks the trail of such sustained and pronounced move toward free markets in (...) terms of ethics, morality, social welfare and social justice? How does one keep a social score in this seemingly relentless and irreversible move all over the world toward free market capitalism?In this paper we shall attempt to address these and related questions. Drawing on concepts from organization theory and social philosophy and using publicly available financial information, we shall illustrate how, amidst the myriad and mixed noises, some sense of order and signal can be discerned in addressing issues of equity and social justice. Toward this end, first, we provide a broad contrast between two models of financial markets: the command model and the free market model and proceed to examine publicly available financial information and analyze the trends and patterns with graphical representations using publicly available data from Handbook of International Economic Statistics. Next, we explore the implications of financial performance measures for social welfare and social justice and discuss the social perils of free markets using the Mexican and Asian Financial crises as the focal points. Finally, we present a set of recommendations for smoother structural transition. (shrink)

This special issue introduces the study of financial technologies and finance to the field of philosophy of technology, bringing together two different fields that have not traditionally been in dialogue. The included articles are: Digital Art as ‘Monetised Graphics’: Enforcing Intellectual Property on the Blockchain, by Martin Zeilinger; Fundamentals of Algorithmic Markets: Liquidity, Contingency, and the Incomputability of Exchange, by Laura Lotti; ‘Crises of Modernity’ Discourses and the Rise of Financial Technologies in a Contested Mechanized World, by (...) Marinus Ossewaarde; Two Technical Images: Blockchain and High-Frequency Trading, by Diego Viana; and The Blockchain as a Narrative Technology: Investigating the Social Ontology and Normative Configurations of Cryptocurrencies, by Wessel Reijers and Mark Coeckelbergh. (shrink)

This article addresses two main topics: the relationship between Slovenia and the European Union budget, focusing on specific factors the country faced when negotiating for various multiannual financial frameworks (MFFs), and membership in the euro area following the introduction of the euro in 2007. The main findings are (1) the EU budget, especially the funds earmarked for the Cohesion Policy, has significantly contributed to the economic development of Slovenia and has played a vital role in reducing the country’s development (...) gap vis-à-vis the EU average and (2) despite requiring Slovenia to give up its monetary sovereignty, the introduction of the euro and membership in the euro area protected the country from potential currency attacks and significantly reduced currency risk for its residents when carrying out international economic transactions, contributing to lower inflation and interest rates, and to better and cheaper access to international financial markets, as clearly demonstrated during the recent crises. (shrink)

Moral harm brand crises occur when a brand’s conduct appears to violate prevailing social norms, eroding goodwill and threatening financial stability. Although scholarship on these value-driven breaches has expanded, findings remain scattered across disciplines and contexts, limiting their practical utility. This review integrates four decades of research by systematically analyzing seventy-four peer-reviewed articles using a multi-stage protocol that combines bibliometric mapping with qualitative coding to trace the field’s evolution and organize existing knowledge into a coherent framework. The synthesis (...) identifies key antecedents, mediators, moderators, outcomes, and theories. Building on these insights, we formulate a set of research propositions that call for culturally inclusive studies, longitudinal designs and deeper investigation of social media amplification, emotional complexity, and industry-wide contagion. By clarifying the mechanisms through which ethical lapses escalate and by outlining a roadmap for theory development and managerial action, we hope to equip scholars and practitioners with resources that enable them to anticipate, mitigate, and learn from moral harm brand crises in an era of heightened stakeholder scrutiny. (shrink)

Not for the first time, the banks and other financial institutions have got themselves – and the rest of us – into a mess, this time on an unprecedented financial and geographical scale. It is no surprise that opinions about causes, consequences and cures abound with ethical issues, as well as technical and economic concerns, a focus of attention. It is to be hoped that useful lessons for the future will be learned. In this chapter, however, we step (...) back from a direct engagement with the stated ills of the financial system itself, whether actual or perceived, chronic or acute. Our starting point is that crisis in the financial system not only makes us stop and think; but it might also, particularly under conditions of moral panic, prevent us from thinking well. Our contention is that a further impediment to thinking well about financial crises is the lack of a substantial body of academic knowledge that might be termed ‘financial ethics’ – a corpus of well developed conceptual insights and appropriate empirical evidence. We identify some of the reasons for this situation and proffer some suggestions regarding what might be done to remedy it – including the development of knowledge that is as relevant to everyday practices during periods of normality as it is to providing perspectives on crisis. The chapter is structured as follows: the next section provides a perspective on debate during times of crisis; the middle section seeks to explain why academic financial ethics is not a significant constituent element of debate on the financial crisis post-2007; and the final two main sections explore ways in which an academic agenda for financial ethics might be constructed. In a curious way this chapter echoes some of the themes and especially the conclusion of David Bevan’s chapter in this work (chapter18) although the reasoning to the conclusion that finance ethics is an empty set follows a rather different Badiou-inspired path in chapter 18. (shrink)

I argue that epistemic failings are a significant and underappreciated moral hazard in the financial services industry. I argue further that an analysis of these epistemic failings and their means of redress is best developed by identifying policies and procedures that are likely to facilitate good judgment. These policies and procedures are “best epistemic practices.” I explain how best epistemic practices support good reasoning, thereby facilitating accurate judgments about risk and reward. Failures to promote and adhere to best epistemic (...) practices contributed to the 2008 financial crisis. I identify and discuss some of the ways in which best epistemic practices were violated in the events that led to the crisis, with a focus on the role of the credit rating agencies. I go on to discuss some of the ways in which these failings have been redressed. I conclude by observing how proactive regulation for best epistemic practices might help us to anticipate and avoid future crises. (shrink)

In this essay David Lea approaches the decline in the study and teaching of the humanities within the university context from a financial perspective. As humanities departments are either closed down or have their curriculum attenuated, it is obvious that the revenue previously available to support such programs has not been forthcoming. This change is often explained as the result of cost cutting necessary during periods of financial crisis, but this justification is belied by the fact that while (...) the humanities have suffered during recent “financial crises,” other areas within the university have grown. Resources that could have supported the humanities have instead been applied elsewhere: first, to increasing the administration and ancillary support staff; and second, in support of subjects oriented toward technology and the market. Ultimately, Lea links the decline of the humanities to the growing financialization of the economy, the ideology of managerialism, and a contemporary tradition that accords with the “procedures of the realms of the market and of liberal individualist politics.”. (shrink)

The essays in this volume delve deeper into the cultural and intellectual foundations, philosophical ideas, political traditions, and economic movements that underlie the greatest financial crisis in nearly a century.

The last few years have seen the emergence of a more political, ‘post-Derridean’ generation, critical of the impotent messianism of the politics of deconstruction. As Žižek would have it: ‘Derrida's notion of ‘deconstruction as ethics’ seems to rely on a utopian hope which sustains the spectre of ‘infinite justice’, forever postponed, always to come’ (Žižek 2008: 225). The promise of redemption, it follows, would reside in an insubstantial promissory value, in the writing of irredeemable cheques that, if cashed in, could (...) only ever lead to default. With its ethos of play and over-investment in an empty promise, deconstruction starts to look symptomatic of the now-bankrupt age of excess. Does the current financial crisis not entail a crisis of Derrida? This reading contrives to elide what is genuinely political in Derrida, and thereby fails to recognise the deconstruction of economic theodicy implicit in his work. Jean-Luc Nancy has argued that the concept of sacrifice is irreducibly linked to the short-circuiting of the political. We see in Derrida, however, that sacrifice is at the heart of politics, a response to undecidability that is precisely opposed to the fantasy of economics without sacrifice. Furthermore, sacrificial politics is the condition of possibility of the promise, which is constructed and contingent, rather than a priori. If there is a problem with this, it is that Derrida does not sufficiently entertain the prospect of the promise becoming so distant as to be effectively meaningless. Drawing on Bernard Stiegler, this article argues for an expansion of Derrida's account, to show not only that politics is sacrifice, but moreover that the promise of redemption cannot live on in the absence of sacrifice. (shrink)

Previous research on how financial crisis affects managers’ earnings management behavior has resulted in different scenarios with inconclusive results. This Chapter presents both the positivist and the critical realist approach to the research question. To address the ambiguity in the findings in the literature, the present study used a mainstream approach, with the results showing no statistical support for the hypothesis that financial crisis influences earnings management. More specifically, results indicate that managers’ earnings behavior does not differ from (...) the pre-crisis to the crisis periods. Further, it presents critical realism as an alternative to mainstream approach. The study argues against the existence of a causal law based on a constant conjunction model (i.e., whenever a financial crisis happens, earnings management happens) and concludes that financial crisis cannot be seen as the cause of earnings management. Finally, it suggests exploring other structures at work that might be responsible for earnings management. (shrink)

A partir dos anos 1950, no auge do processo de descolonização afro-asiática, Portugal sofreu diversas pressões internacionais devido à sua política colonial. Marcado historicamente por sua debilidade econômica, o país havia implementado um modelo colonialista baseado na abertura de seus domínios ultramarinos à atuação do capital internacional, em um modelo de colonialismo dependente. Este fato, aliado aos interesses estratégicos dos EUA e da OTAN, no contexto da Guerra Fria, fez com que as grandes potências acabassem esvaziando as pressões contrárias ao (...) colonialismo português. Assim, apesar da política isolacionista implementada pelo regime salazarista e da condenação da opinião pública internacional, os interesses econômicos e financeiros das grandes potências e as determinações político-estratégicas da conjuntura internacional acabaram por garantir alguma sobrevida ao Império Colonial Luso até meados da década de 1970.The crisis of the last empire: the Cold War and the final decades of Portuguese colonialism From the 1950s onwards, at the height of the process of Afro-Asian decolonization, Portugal underwent various international pressures due to its colonial policy. Historically marked by its economic weakness, the country had implemented a dependent colonialist model based on the opening of its overseas domains to the international capital. In addition, the strategic interests of the United States and NATO within the context of the Cold War resulted in a deflation of the pressures against Portuguese colonialism by the great powers. Hence, despite the isolationist policy implemented by the Salazar regime and the condemnation of colonialism by international public opinion, the economic and financial interests of the great powers, as well the political and strategic constraints of the international conjuncture, granted the survival to the Portuguese Colonial Empire until the mid-1970s. Resumen La crisis del último imperio: la Guerra Fría y las últimas décadas del colonialismo portugués Desde la década de 1950, en el apogeo del proceso de descolonización africano-asiática, Portugal sufrió varias presiones internacionales debido a su política colonial. Marcado históricamente por su debilidad económica, el país había implementado un modelo colonialista basado en la apertura de sus dominios de ultramar a la actuación del capital internacional, en un modelo de colonialismo dependiente. Este hecho, junto con los intereses estratégicos de los EE.UU. y la OTAN en el contexto de la Guerra Fría, hizo que las grandes potencias acabaran por vaciar las presiones contra el colonialismo portugués. Así, a pesar de la política aislacionista implementada por el régimen salazarista y la condena por la opinión pública internacional, los intereses económicos y financieros de las grandes potencias y las determinaciones político-estratégicas de la coyuntura internacional acabaron por garantizar alguna sobrevida al Imperio Colonial Luso hasta mediados de la década de 1970. (shrink)