Book contents
- Frontmatter
- Contents
- List of Figures and Tables
- Acknowledgments
- 1 NATIONAL GOVERNMENTS AND GLOBAL CAPITAL: A RECASTING
- 2 FINANCIAL MARKET INFLUENCE ON GOVERNMENT POLICY: THEORY AND HYPOTHESES
- 3 FINANCIAL MARKET INFLUENCE IN DEVELOPED NATIONS: AN EMPIRICAL ASSESSMENT
- 4 FINANCIAL MARKET–GOVERNMENT RELATIONS IN EMERGING MARKETS
- 5 POLITICS MEETS MARKETS: DOMESTIC RESPONSES TO FINANCIAL MARKET PRESSURES
- 6 ALTERNATIVE DOMESTIC RESPONSES: CHANGES TO FINANCIAL MARKET–GOVERNMENT RELATIONS
- 7 HISTORY REPEATING ITSELF? FINANCIAL MARKETS AND NATIONAL GOVERNMENT POLICIES BEFORE THE FIRST WORLD WAR
- 8 FINANCIAL MARKET–GOVERNMENT RELATIONS IN THE TWENTY-FIRST CENTURY
- APPENDIX 2.1 FINANCIAL MARKET INTERVIEWS
- APPENDIX 3.1 DATA DEFINITIONS AND SOURCES
- APPENDIX 3.2 FULL RESULTS FOR MACROINDICATORS MODEL
- APPENDIX 4.1 THE COMPONENTS OF THE SDDS
- APPENDIX 4.2 RATING AGENCY METHODOLOGIES
- APPENDIX 4.3 RATING AGENCY OUTCOMES, 1997
- APPENDIX 6.1 NATIONS IN CAPITAL CONTROLS DATA SET
- References
- Index
- Titles in the series
2 - FINANCIAL MARKET INFLUENCE ON GOVERNMENT POLICY: THEORY AND HYPOTHESES
Published online by Cambridge University Press: 14 January 2010
- Frontmatter
- Contents
- List of Figures and Tables
- Acknowledgments
- 1 NATIONAL GOVERNMENTS AND GLOBAL CAPITAL: A RECASTING
- 2 FINANCIAL MARKET INFLUENCE ON GOVERNMENT POLICY: THEORY AND HYPOTHESES
- 3 FINANCIAL MARKET INFLUENCE IN DEVELOPED NATIONS: AN EMPIRICAL ASSESSMENT
- 4 FINANCIAL MARKET–GOVERNMENT RELATIONS IN EMERGING MARKETS
- 5 POLITICS MEETS MARKETS: DOMESTIC RESPONSES TO FINANCIAL MARKET PRESSURES
- 6 ALTERNATIVE DOMESTIC RESPONSES: CHANGES TO FINANCIAL MARKET–GOVERNMENT RELATIONS
- 7 HISTORY REPEATING ITSELF? FINANCIAL MARKETS AND NATIONAL GOVERNMENT POLICIES BEFORE THE FIRST WORLD WAR
- 8 FINANCIAL MARKET–GOVERNMENT RELATIONS IN THE TWENTY-FIRST CENTURY
- APPENDIX 2.1 FINANCIAL MARKET INTERVIEWS
- APPENDIX 3.1 DATA DEFINITIONS AND SOURCES
- APPENDIX 3.2 FULL RESULTS FOR MACROINDICATORS MODEL
- APPENDIX 4.1 THE COMPONENTS OF THE SDDS
- APPENDIX 4.2 RATING AGENCY METHODOLOGIES
- APPENDIX 4.3 RATING AGENCY OUTCOMES, 1997
- APPENDIX 6.1 NATIONS IN CAPITAL CONTROLS DATA SET
- References
- Index
- Titles in the series
Summary
The Prime Minister [of Thailand] laughed, but he knew just what I meant: joining the global economy and plugging into the Electronic Herd is the equivalent of taking your country public. It is the equivalent of turning your country into a public company; only the shareholders are no longer just your own citizens. They are the members of the Electronic Herd, wherever they might be. And, as I noted earlier, they don't just vote once every four years. They vote every hour, every day through their mutual funds, their pension funds, their brokers.
When a bond trader at Goldman Sachs, or a fund manager at Fidelity, sits at his desk, contemplating where to allocate investment, what information does he consider? Does he think only about inflation, the balance of payments, and the overall government budget deficit – a few figures he can gather before lunch? Does he seek more fine-grained information, considering the structure of a nation's tax system, the allocation of its budget across functional categories, and the structure of employer–union relations? Or does he keep his eyes on his Reuters screen, nervously watching for news of political developments and forecasts of government change?
This section of the book provides a theoretical framework and empirical evidence to help understand the activities of bond traders and investment managers. In this and the following two chapters, I address the financial market side of the capital market–national government nexus.
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- Global Capital and National Governments , pp. 25 - 49Publisher: Cambridge University PressPrint publication year: 2003