The IMF's Rethink of Global Banks: Critical in Theory,Orthodox in Practice

The International Monetary Fund's (IMF) new financial interconnectedness agenda, developed in response to postcrisis calls from G20 to better understand systemic financial institutions, deploys a critical approach that stresses the spatial, political, and institutional dimensions of cross‐border financial networks. It portrays global banks as key nodes in those networks, “super‐spreaders” of systemic risk through complex business models that involve yield search, regulatory and tax arbitrage. Yet this critical view does not translate into its policy advice at country level. In regular surveillance of developing countries, the IMF remains committed to a benign view of transnational banking, even when confronted with growing cross‐border fragilities. During crises of cross‐border banking, the IMF tailors its conditionality to minimize domestic regulatory challenges to cross‐border banking models and to propose crisis measures that create new profit opportunities for transnational banks.     

The Return of Political Risk: Foreign-Owned Banks in Emerging Europe

Political risk—risk that investments are damaged by policy action of authorities—increased during the financial crisis due to controversies about the distribution of accumulated losses among stakeholders. Authorities interconnected by cross-border banks considered unilateral policies that minimised losses for domestic stakeholders at the expense of their foreign counterparts. This is at odds both with the assumption behind financial integration which presumes multilateral responses to cross-border shocks and with the typical definition of political risks that ignores the fact that not only host-country, but also home-country authorities can create such risks. This paper recasts the definition of political risk and reviews instances when political risk materialised within the EU banking market between 2007 and 2011. The analysis reveals that the EU regulatory framework needs to be enhanced to contain resurgent political risks systematically rather than through ad hoc interventions of the EU and international bodies.     

Crisis communication during the red sludge spill disaster in Hungary—a media content analysis‐based investigation

The article analyses the media coverage of red sludge spill, one of Hungary's largest crises. The study focuses on the analysis of stakeholder communication through their media representation, including the patterns, frames and messaging of the key stakeholder groups. It is found that stakeholder groups create their own framing and messaging and therefore give impetus to the creation of parallel realities. The scope of the analysis has allowed for the analysis of longitudinal changes and identification of trends in the behaviour of the media. Copyright © 2014 John Wiley & Sons, Ltd.     

The Effect of Distributive Politics on Electoral Participation: Evidence from 70 Million Agricultural Payments

Political Behavior - Policy feedbacks take place when public policies change mass participation and mobilize key constituencies. This can influence future rounds of policymaking and solidify...     

Local Economic Shocks and National Election Outcomes: Evidence from Hungarian Administrative Data

Political Behavior - What are the consequences of unequal economic conditions on national election results? In this study, we use extraordinarily granular economic data measured without sampling...     

Justifying controversial political decisions:Home style in the laboratory

Elected officials are not passive bystanders in the electoral process. Rather, they try to influence their constituents' perceptions of events through a variety of strategies, including explanations. Fenno's case studies reported inHome Style (1978) have yielded important insights into the explanations representatives provide to their constituents to account for unpopular or controversial decisions. This paper reports an experimental analysis of the effectiveness of two principled justifications taken from Fenno'sHome Style interviews: individualistic and communitarian appeals to conscience. We also present a theoretical framework for the anlaysis of political accounts, conceptualizing them as a type of persuasive communication. The impact of the two justifications on a number of important judgments is examined within this framework, including reactions to controversial policies, attributions of responsibility, perceptions of political character, and evaluations of public officials.     

Centrist by Comparison: Extremism and the Expansion of the Political Spectrum

While it is well understood that policy suggestions outside the range of mainstream debate are prevalent in various policy domains of American politics, their effects remain unexplored. In this paper, we suggest that proposing policies far from the political mainstream can re-structure voter perceptions of where alternatives lie in the ideological space. We provide support for this hypothesis using results from six survey experiments. We find that the introduction of extreme alternatives into the public discourse makes mainstream policies on the same side of the spectrum look more centrist in the public eye, thus increasing support for these moderate alternatives.