Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The state as the investor of last resort: a comparative study of banking crises in Denmark and Sweden
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences. Stockholm Sch Econ, Sweden.
Copenhagen Business Sch, Denmark.
2019 (English)In: Scandinavian Economic History Review, ISSN 0358-5522, E-ISSN 1750-2837, Vol. 67, no 2, p. 171-189Article in journal (Refereed) Published
Abstract [en]

This article addresses the role of the state in bailouts, i.e. government objectives and measures during banking crises. Our main question concerns the incentives and measures that governments pursue in a state of a systemic banking crisis, and why they are launched. What have been the objectives and operations when a government has decided to act as an investor of last resort and take control of commercial banks? The answer is limited to cover the financial history of two countries. The study unveils government interventions in the latest crises in Denmark and Sweden, and critically analyse which objectives justified the setting up of organisations for financial stability. The two country-cases differ in terms of historical experience, context, and time-period. We compare intrinsic principles and perceptions for government intervention, with a focus on bailouts and state-owned banks. We argue that the implementation of measures dates back to the early phases of capitalism in the 19th century i.e. is part of a historical institutional pattern. The similarities shown indicate that there is an international standard for a public-private arrangement ensuring financial stability. Our results relate to the discussion of launching effective and legitimate state policies during and after a systemic banking crisis.

Place, publisher, year, edition, pages
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD , 2019. Vol. 67, no 2, p. 171-189
Keywords [en]
Bailout; banking crisis; government intervention; state-ownership; path dependency
National Category
Economic History
Identifiers
URN: urn:nbn:se:liu:diva-159016DOI: 10.1080/03585522.2018.1557075ISI: 000472561300005OAI: oai:DiVA.org:liu-159016DiVA, id: diva2:1338078
Note

Funding Agencies|Aners stiftelse and Nasdaq Nordic Foundation

Available from: 2019-07-19 Created: 2019-07-19 Last updated: 2019-10-18

Open Access in DiVA

fulltext(1528 kB)21 downloads
File information
File name FULLTEXT01.pdfFile size 1528 kBChecksum SHA-512
e6b909ddef39f748889d9eaf160390e673e8fc62398c9e7b7ca6f4917c9e265f07c6e69601d4d2ea06fc4a6b36b33f037a2e9850192d54181833db25c004e8dc
Type fulltextMimetype application/pdf

Other links

Publisher's full text

Search in DiVA

By author/editor
Sjögren, Hans
By organisation
EconomicsFaculty of Arts and Sciences
In the same journal
Scandinavian Economic History Review
Economic History

Search outside of DiVA

GoogleGoogle Scholar
Total: 21 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 37 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf