1. Varieties of Liberalism: Anglo-Saxon Capitalism in Crisis? Sue Konzelmann, Marc Fovargue-Davies, Gerhard Schnyder & John Wright LCCGE Seminar Friday, 22 October 2010

2. Market capitalization & Cost of bank bail-outs Change ($bn) 1999-2009 Bank bail-out package as a % GDP (March 2009) Canada97.5 0.0 % Australia85.6 0.1 % UK -211.4 19.8 % USA-633 6.8 % Source: Financial Times, 23 March 2009, p.9. 1999 values are as of 31 May 1999; 2009 values are as of 17 March 2009; Stewart 2009.

3. Overview (1) Varieties of Economic Liberalism & the State –Neo-classical liberalism –Ordoliberalism Contemporary Economic Liberalization in the Anglo-Saxon World –Influenced by political & economic climate of 1970s & 80s –1971: US discontinues gold backing of the American dollar, leading to the collapse of Bretton Woods; UK introduces policy of Competition & Credit Control and makes a Dash for Growth

4. Overview (2) Deregulation & Financial Market Supervision –The regulator & the regulated –US & UK: Balancing the requirements of a global financial centre with those of a stable marketplace –Canada & Australia: Regulating financial institutions Early Effects and Responses to Crises during the 1980s & 1990s –Australias corporate cowboys –The American Savings & Loan crisis –Canadian & British bank, insurance trust & investment house failures –Looking into the abyss …

5. The Structuring Role of Theory & Policy, Tempered by Context Getting it Right & Getting it Wrong? Philosophy of Liberalization & Relationships –Relations between financial institutions & the state –Balance of power (in Canada & Australia)? Banks are bastards … bigger banks are bigger bastards We are the regulator; our job is to tell you what to Conclusions (1)

6. Smart Regulation –Recognition of a community of shared fate? The Regulator & the Regulated National Context The Direction of Reform –No such thing as a perfect regulatory system –Aim of legislation: to avoid future crises & achieve a dynamic balance between markets & the state –Understanding the true nature of economic liberalism … Conclusions (2)