Prof. Dr. Mark Hallerberg, Prof. Dr. Gerhard Hammerschmid, Prof. Dr. Anke Hassel, Prof. Dr. Mark Kayser, Prof. Dr. Kai Wegrich
Robert Gäde, M.A., Jonas Markgraf, M.A., Dr. Marek Naczyk, Jochen Rehmert, M.A.
Project term: September 1, 2015 – August 31, 2018
The financial crisis has created and revealed economic vulnerabilities of modern societies, which industrialised countries had assumed that they had overcome a long time ago. It brought back parallels to the Great Depression in Europe and North America. The gravity of the effects of the financial crisis contrasts strikingly with the limited attempts at analyzing the causes and dynamics and at learning lessons from it. The project focuses on understanding changes in the relationship between the state, society and the financial sector to gain a broader understanding of the causes and consequences of the global financial crisis of 2007/2008. It analyses these relationships from the perspective of different roles of the state in relation to the financial sector and how each of these relationships – regulator, service provider, owner, and democratic agent – are shaped by perceptions of risk associated with financial markets or – conversely – how risk perceptions are shaped by those relationships. To this end, the project takes a long-term view stretching back about two decades before the beginning of the financial crisis of 2007/2008.
The adjustment of national policies, regulation, and banking systems to global finance is the lens through which we propose to further our understanding of the causes and effects of the financial crises. National policies and politics in advanced democracies have to mediate between the demands of their electorates as well as the realities of global markets. In this process, we argue that specific policies (pensions, public banks, regulation, reform policies) play a crucial role for the workings of financial markets. This common theme is examined in four subprojects: