 Economic Actors and the Problem of Externalities: Could Financial Markets Play a Role in Democratic Backsliding?Izabela Jedrzejowska-Schiffauer, Peter Schiffauer and Gratiela Georgiana Noja European Research Studies Journal, 2020, vol. XXIII, issue 1, 215-238 Abstract: Purpose: Economic actors tend to exert powerful impact on socio-economic and political developments around the globe, including yielding financial and political crises in developed democracies. Approach/Methodology/Design: While a number of studies discuss the impact of finance on political and societal reality, research on the interlink between finance and democratic processes is very limited. Drawing on secondary literature and a case study of two young Central-European democracies, this paper contends a relationship between financial economy and democratic backsliding. Findings: The findings challenge the existing conventional accounts of the reversal to authoritarian politics in Poland and Hungary. Practical Implications: They also identify a mismatch between the constitutional foundations for embedding the market within the society and its institutions on the one hand, and the political-institutional reality in contemporary democracies. Originality/Value: The research provides theoretical assumptions encouraging further study on unwelcome externalities produced by financial markets. Keywords: Financial markets; externalities; democratic backsliding; embeddedness. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xxiii:y:2020:i:1:p:215-238 Access Statistics for this article More articles in European Research Studies Journal from European Research Studies Journal |
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