[...]... controversial issue, the ability of member states of the Eurozone to leave the monetary union, either voluntarily or involuntarily The presentation of the two facets of the crisis, the financial and the sovereign debt problems, is followed in Part 3 by an investigation of the meaning of policy responses to the crisis in the USA and Europe, a reflection on how the political economy of capitalist states... reflect on the nature of the state itself There are four main views of the state one can find in the literature A juristic view of the state, most closely associated with the writings of Hans Kelsen (1967), views the state as the product of a system of rules where compliance is ensured via un-derived structures of authority A Hegelian view of the state on the other hand sees the institutions of the state... Posner (whether inefficiency is due to the inability of regulators to translate mandates to effective rules, or due to capture and the resulting loss of sight of regulatory goals) is to cast doubt on the entire link between democratic politics and regulatory systems If the articulation of political aims becomes lost in the fog of actually managing regulatory systems, then wouldn’t it be better to dispense... under the control of hybrid structures, then political legitimacy is defused and the subjugation of social needs to the profit imperative is in danger of becoming total Vesting ability to exercise coercion to private forces de-legitimises the state, and de-legitimising the state leads to a corruption of social cohesion We should not therefore be quick to agree to conceptualise regulation outside the notion... determining the flavour and quality of any governance regime, including a democratic one According to Locke, therefore, the whole purpose of government is to make laws for the regulation and preservation of property, and for the defence of the community (Popkin and Stroll, 1986: 80) A key argument of this book is that as the preservation and use of private property rights rests at the core of our conception of. .. record leads then to a presentation of the financial crisis in Chapter 4 Chapter 4 presents the main features of what we call the Great Recession and is split into two main sections The first section presents the financial part of the crisis, from the sub-prime mortgage market collapse in the USA to the credit crunch The second section is less historical and more contemporary as it addresses the European... views regulation as the expression of technocracy? The history of regulation reveals a tension between the evolution of rules via the courts and through the legislative process The history of US intervention in market processes offers a useful illustration of how regulation evolved from being virtually non-existent to being a newly acquired function of the courts and later a function of the state itself... in response to demands by the public for the correction of inefficient or inequitable market practices The second theory was the capture theory, which in turn holds that regulation is supplied in response to the demands of interest groups struggling among themselves to maximise the benefits of their members The standard public interest theory holds that regulation deals with market failures and externalities... (1974: 344) The message emanating from this short description of the evolution of regulatory theory from the public interest to the capture theories helps us answer the question we set at the beginning of this subsection How did we arrive at a state model that views regulation as the expression of technocracy? The effect of the critique of the link between the political process and efficient regulatory outcomes... ‘leave their mark’ (Sandel, 2012) we come increasingly (to borrow Oscar Wilde’s quote) to know the price of everything and the value of nothing This makes societies less likely to ‘counter-move’ à la Polanyi The law, however, can help us out of this trap and offer hope to those who wish to counter-move (Perry-Kessaris, 2011), because the law can re-establish the link between the popular will and economic . defence of the state–market dichot- omy, a critique of the tenets of neoclassical economics and an evaluation of what the fi nancial crisis heralds for the future of the political economy of western. Law and Financial Services David Harrison Redefi ning the Market-State Relationship R esponses to the F inancial Crisis and the F uture of R egulation Ioannis Glinavos C Look at the. in the context of fi nancial crisis. In these pages, the reader will fi nd a methodologi- cal defence of the state–market dichotomy, a critique of the sacred tenets of neoclassical economics and