 Paved with good intentions: Misdirected idealism in the lead-up to 2008’s GFCAnthony M Gould and Milène R Lokrou The Economic and Labour Relations Review, 2018, vol. 29, issue 4, 394-409 Abstract: Irresponsible lending practices on the part of financial institutions and proliferation of tradable derivatives were key causal agents of the 2008 financial crisis. However, it is less clear why, historically, loose credit arrangements were so widespread. Somewhat misleadingly, much conjecture has laid blame at the feet of financial institutions themselves. While it is true that duplicitous and even corrupt lending practices were consequential antecedents of the crisis, a legacy commitment to certain – laudable – elements of New-Dealism created context for these elements to become established. To understand really what went wrong, it is necessary to look back before the 2000s and appreciate the interaction that was occurring between a long-term policy commitment to neoliberalism and piecemeal/fragmented application of approaches that aimed to assist financially disadvantaged people. Using the analogy of heart-attack pathology to guide some of its analysis, this essay argues for better policy-integration. JEL Codes: G01, G2, F66, H12, J52 Keywords: Business cycle; collective bargaining; economic stimulus; employment conditions; global financial crisis; globalisation; industrial relations; Keynesian economics/theory; labour markets (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:sae:ecolab:v:29:y:2018:i:4:p:394-409 Access Statistics for this article More articles in The Economic and Labour Relations Review |
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