The Global System of Finance

A bstract .   In the last decades, revolutionary changes in financial markets, instruments, and institutions have stimulated empirical and theoretical investigations into the interaction of the financial and the "real" side of economic systems. While a considerable body of empirical investigations seems to provide evidence of positive correlations between stock market development and economic growth, there is no consensus in other social sciences as to whether there are two-way linkages, and if so, how to conceive a possible mechanism of interaction. Particularly, the hypergrowth and ubiquity of financial markets has triggered controversial debates on how to understand today's economic landscape. With the objective of clarifying the relationship between finance and economy, this article restructures the present debate through the lenses of Talcott Parsons's and Niklas Luhmann's theories of social systems. Basic system-theoretical ideas on social aspects of finance and economy as well as on uncertainty and risk hint at new insights into the global system of finance that might go far beyond explanatory models of causality.     

Stratification,the relation between states and urban and regional development

L'intention de cet essai est de provoquer une discussion sur une perspective comparative de l'éeconomie politique. Un compte rendu est fait des contributions récentes de Poulantzas et de Runciman sur les systèmes de pouvoir et de conflit dans l'état-nation contemporain. Une attention particulière est donnée à la typologie de Runciman de six sociétés idéales types. A titre de contraste, la théorie marxiste de l'état est perçue comme étant circulaire et ne pouvant pas confronter d'une manière satisfaisante les problèmes posés par les sociétés de l'Europe de i'Est, et aussi par la gamme de variations à l'intérieur du monde capitaliste. Dans la sphère du développement urbain et régional, la variation de buts et de résultats est en partie déterminée par les relations entre états. Les contraintes imposées par le marché mondial, par la disposition et la circulation inégales de materiaux et de denrées, sont structurées plus par la détermination des états à accroǐtre la production matérielle que par le mode de production dominant dans une formation sociale donnée. Cet acharnement à accroǐtre la production matérielle n'est visiblement pas moins fort dans les sociétés de type ‘socialiste’ ou ‘révolutionnaire’. La théorie marxiste semble accepter l'expansion inévitable de la production matérielle sans se soucier des limites écologiques. De la méme façon qu'il y a un besoin net pour une typologie du pouvoir et des formes de contrǒle social, il y a aussi besoin d'une analyse urbaine et régionale détaillée dans les formations sociales particulières qui pourrait égaler présuppositions théoriques avec résultats empiriques. Les questions pratiques en ce qui concerne qui reçoit quoi, qui détermine qui reçoit quoi, qu'est-ce qui détermine qui reçoit quoi, ne sont pas en mesure d'ětre repondues d'une façon monocausale.     

Patterns of vertical specialisation in trade: long-run evidence for 91 countries

Review of World Economics - The authors estimate the domestic value-added content in exports of manufacturing goods (VAX-D ratio) for 91 countries over the period from 1970 to 2013. They find a...     

What if the UK had Joined the Euro in 1999?

The issue of whether the UK should join the European single currency has been fiercely debated for the past two decades. However little research has been devoted to forecasting hypothetical projections for important UK economic variables, assuming that the UK had in fact joined the euro at its inception in 1999. This paper focuses on estimating counterfactual series for two key macroeconomic variables: unemployment and output. We do this by estimating Phillips curves for the UK, which we then use to compute counterfactual series for what unemployment and output may have looked like for the UK had they adopted the single currency in 1999. Based on the comparison of our forecasts with observed data, we find that the UK was correct in not joining the euro; had they adopted the European single currency in 1999, unemployment would have been higher and output would have been lower.     

Some sceptical comments on the relationship between social support and well‐being

There appears to be widespread acceptance that there is a general positive correlation between ‘social support’ and well‐being. Individuals' health may remain better and their recovery from certain diseases more likely when potential, if not actual, social support is available. This paper addresses two specific methodological problems. Firstly, the definition of ‘social support’ varies very widely in the literature. Furthermore, whilst other variables may be rigorously controlled, the ‘social support’ variable may still be a proxy for other factors. The lack of international agreement on a common meaning for social support vitiates comparative analysis. Secondly, in an attempt to explain why some societies are ‘healthier’ than others, Wilkinson points to an association between more egalitarian societies, ‘better’ micro‐social relationships and better health. This attempt to explain societal differences in terms of micro‐social processes is problematic. First, individuals with good social support may still be healthier in ‘unhealthy’ societies than those without such support in ‘healthy’ societies. Extrapolation of individual outcomes may not be the best way to explain societal differences. Secondly, it is not demonstrated that specific micro‐social processes either cause or are caused by the institutional, organizational and political contexts, which variously characterize more healthy or less healthy societies amongst the most developed nations.