Governing Risk: The IMF and Global Financial Crises (International Political Economy)

Contents......Page 6
Acknowledgements......Page 9
1 Introduction: The IMF and Global Financial Governance......Page 12
1.1 International financial integration and the IMF......Page 15
1.2 Policy ideas and policy change......Page 19
1.3 Why the evolutionary approach?......Page 22
1.4 Structure of the book......Page 25
2 Evolutionary Policies: Economic Ideas and Legitimacy Feedback......Page 28
2.1 The materialist explanation: Explaining IMF policies from the outside......Page 29
2.2 The constructivist explanation: Explaining IMF policies from within......Page 32
2.3 An evolutionary theoretical framework for the IMF’s policies......Page 35
Legitimacy feedback......Page 36
2.4 Beyond the legitimacy feedback: Ambiguity and the inner workings of the Fund......Page 40
2.5 Methodological notes......Page 43
3.1 The international economic system in the early 1990s......Page 46
New patterns in international capital markets......Page 48
The Washington consensus......Page 51
3.2 The consensus on 19th street: The idea of orderly liberalization......Page 52
The normative dimension of orderly liberalization......Page 55
The procedural dimension of orderly liberalization......Page 59
3.3 The Fund’s social constituencies for legitimation......Page 63
The industrial World......Page 64
The emerging and developing World......Page 69
3.4 Redesigning the IMF in an era of globalized finance......Page 70
3.5 Conclusion......Page 73
4 The Mexican Crisis: Testing the Consensus......Page 75
4.1 The Mexican crisis......Page 76
The (short-term) response to the crisis......Page 81
4.2 The IMF interprets the crisis......Page 84
4.3 The socio-political validation of the idea of orderly liberalization......Page 89
Crisis prevention: Reforming IMF surveillance......Page 92
Crisis management: Reforming IMF assistance......Page 95
The amendment to the Articles of Agreement......Page 96
4.5 Conclusions......Page 102
5 The Asian Crisis: Questioning the Consensus......Page 104
5.1 The Asian crisis......Page 105
The (short-term) response to the crisis......Page 110
5.2 The IMF interprets the crisis......Page 112
5.3 The mobilization of opposition against the idea of orderly liberalization......Page 117
Capital controls back on screen......Page 118
Downsize the IMF......Page 120
5.4 Failure of the amendment to the Articles of Agreement......Page 123
5.5 Conclusion......Page 128
6 The Subprime Crisis: Towards a New Consensus......Page 130
6.1 After the Asian crisis: The policy idea of market-led liberalization......Page 132
6.2 The subprime crisis......Page 139
The (short-term) response to the crisis......Page 144
6.3 The IMF interpretation of the crisis......Page 147
6.4 The international financial architecture exercise: Ideational contestation and policy debate......Page 151
From market discipline to market regulation......Page 156
International cooperation: The Fund’s comeback......Page 159
6.5 Conclusion......Page 163
7 Conclusions: Past and Future of International Financial Governance......Page 166
7.1 Theoretical argument and alternative explanations......Page 167
7.2 Ideational innovation, ambiguity, and the international financial architecture......Page 170
Ideas and policy outcomes......Page 171
The inner workings of the IMF......Page 173
The international financial architecture......Page 175
7.3 The role of the IMF in the global financial system......Page 178
Annex: list of interviewees......Page 181
Notes......Page 183
Bibliography......Page 199
Index......Page 218