Is resilience enough? The macroprudential reform agenda and the lack of smoothing of the cycle

After the financial crisis, central banks were entrusted with implementing an ambitious macroprudential reform agenda. The goal was arguably twofold: to increase the resilience of the financial system and to lower the amplitudes of the financial cycle. A decade later, the implementation of the agenda is characterized by the pursuit of measures to raise the resilience of the financial system, while tools to smoothen the cycle have been rather sidelined. To explain this difference in implementation efforts, the article combines ideational scholarship with the analytical stance of reputational theory and analyses the technocratic debate over macroprudential strategy among policy‐makers of the Fed, the Bank of England (BoE) and the European Central Bank (ECB). The article identifies reputational concerns linked to the need for discretionary interventions, the uncertain scientific status of the concept of the cycle and missing metrics as causes for concern, leading most central banks to shy away from forcefully implementing this policy goal.     

Legitimate Power without Authority: The Transmission Model

Law and Philosophy - Some authors have argued that legitimacy without authority is possible, though their work has not found much uptake in mainstream political philosophy. I provide an improved...     

From the national state to the rational state and back? An exercise in understanding politics and identity in Germany in the twentieth century

The end of the East‐West conflict and the unification of Germany in 1990 have dramatically altered the geopolitical shape of Europe. Speculations abound, in particular as regards Germany: have the spectres of German nationalism been banished for good? Is the new Berlin Republic different from the Bonn Republic? This article traces the national idea in Germany since the early nineteenth century and argues that the Bonn years have been crucial in the development of a civic culture which transcends the concept of a nation dominant in Germany from 1871 to 1945. Rather than marking a return of traditional nationalist concepts, the unification of Germany may well open the way for a lasting reorientation towards a civic concept of national identity in Germany.     

Do Religious Factors Impact Armed Conflict? Empirical Evidence From Sub-Saharan Africa

Theoretically, the “mobilization hypothesis” establishes a link between religion and conflict by arguing that particular religious structures are prone to mobilization; once politicized, escalation to violent conflict becomes more likely. Yet, despite the religious diversity in sub-Saharan Africa and the religious overtones in a number of African conflicts, this assumption has not yet been backed by systematic empirical research on the religion–conflict nexus in the region. The following questions thus remain: Do religious factors significantly impact the onset of (religious) armed conflict? If so, do they follow the logic of the mobilization hypothesis and, if so, in which way? To answer these questions, this article draws on a unique data inventory of all sub-Saharan countries for the period 1990–2008, particularly including data on mobilization-prone religious structures (e.g., demographic changes, parallel ethno-religious identities) as well as religious factors indicating actual politicization of religion (e.g., inter-religious tensions, religious discrimination, incitement by religious leaders). Logit regressions suggest that religion indeed plays a significant role in African armed conflicts. These findings are compatible with the mobilization hypothesis, and stress the impact of conflict-prone religious structures, and particularly, the fact that overlaps of religious and ethnic identities are conflict-prone. Future research should investigate the religion-ethnicity-nexus in more detail.     

Universal Love or One True Religion? Experimental Evidence of the Ambivalent Effect of Religious Ideas on Altruism and Discrimination

Contrary to the expectations of secularization theory, religion remains socially important and affects politics in multiple ways—especially regarding conflict between religious communities. Theoretically, religion can increase altruism, but belief in the superiority of one's faith may facilitate intergroup discrimination and related conflict. Previous findings remain inconclusive, however, as specific religious ideas have hardly been tested. In this article, we argue that the content of religious ideas has causal effects on intergroup discrimination. We hence test the impact of two opposing, prominent religious ideas on altruism and discrimination: universal love and the notion of one true religion. Conducting dictator games with Christians and Muslims in Ghana and Tanzania, we find causal effects: Whereas the idea of one true religion increases intergroup discrimination, that of universal love fosters equal treatment. The policy implications hereof are obvious—promoting tolerant religious ideas seems crucial to avoiding conflict.     

Of paradigms and power: British economic policy making since Thatcher

How do ruling policy paradigms persist over time and why do they often undergo significant internal ideational changes? While the impact of Peter Hall's approach to policy paradigms on the study of governance has been immense, there is a burgeoning consensus that a “Kuhnian” understanding of paradigms makes punctuated equilibrium style shifts the only game in town. While Hall's approach can account for inter‐paradigm change with reference to exogenous shocks, it does not allow for significant ideational shifts to occur intra‐paradigm. To remedy this, we place ideational power dynamics at the heart of the study of policy paradigms. We demonstrate the general applicability of our approach by examining the evolution of British macroeconomic policy‐making since 1990. We show how key policy‐makers were able to employ their institutional and ideational power to reinterpret and redefine the dominant neoliberal understanding of the economy to match their own specific ideas and policy priorities.     

The Great Recurrence: Karl Polanyi and the crises of the European Union

In his seminal 1944 book The Great Transformation, Polanyi describes the rise and fall of liberal capitalism during the long nineteenth century. Many have realised that Polanyi has a lot to tell about the European Union in the aftermath of the financial crisis. The paper begins with an overview of Polanyi's historiography of the failure of nineteenth‐century liberal capitalism and his account of the four elements that helped liberal capitalism thrive, while precipitating its collapse—the idea of the self‐regulating market, the gold standard, international peace and liberal constitutionalism. Thereafter, the paper describes the particular transformations that these four elements underwent in the course of European integration and after the financial crisis, with a particular focus on the case law of the Court of Justice. The paper argues that their current constellation has a destructive potential that exceeds the economic dimension of the Union and might pave the way for a much greater failure, one that might defeat Europe's greatest success: the establishment of peace. Ultimately, the paper assesses current reform proposals in light of these insights and makes a number of proposals for re‐embedding the economy in society.     

Salvaging the Trans-Pacific Partnership: building blocks for regional and multilateral trade opening?

The high hopes that the Trans-Pacific Partnership (TPP) would open up trade across the Pacific were dashed by the decision of the new US Government under President Trump to withdraw from the agreement in January 2017. Despite being controversial, the TPP had been recognized as an agreement that substantially updates and extends international trade rules responding to new technological developments and economic realities. It was thus lauded by some as the first true twenty-first century trade agreement. The United States’ withdrawal from TPP gives the agreement an uncertain future. Yet, we argue in this paper that some achievements of the TPP might not be lost. The TPP offers important lessons for other ambitious regional trade deals both in terms of process and content. Furthermore, several chapters of the TPP can become blueprints for ongoing and upcoming negotiations at the multilateral level. A one-to-one transposition of TPP provisions into the multilateral trade agreement is unlikely, yet certain provisions could serve as valuable inspiration for future multilateral trade talks.     

Civil society and the European common security and defence policy

The involvement of civil society organizations (CSOs) is widely regarded by students of the EU's domestic policy fields as enhancing transparency and accountability and, more generally, the democratic quality of political processes. This article explores the contribution of CSOs to the EU's Common Security and Defence Policy and assesses whether a democracy-enhancing effect of their involvement can also be demonstrated for this policy field. We analyse the contribution of CSOs based on two common models of democracy: the intergovernmental and the supranational model of democracy. We find that CSOs are indeed quite actively involved in the EU's security policy. With regard to their democracy-enhancing effects, however, our findings are rather mixed. While the engagement of CSOs does provide a remedy for the democratic deficits associated with intergovernmental decision-making, these organizations do not fully meet the demands posed by supranational governance.