Mediating Private Capital with Public Values: The Everyday Politics of Mortgage Bond Systems in Denmark and the U.S.

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Mediating Private Capital with Public Values: The Everyday Politics of Mortgage Bond Systems in Denmark and the U.S.

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Title: Mediating Private Capital with Public Values: The Everyday Politics of Mortgage Bond Systems in Denmark and the U.S.
Author: Seabrooke, Leonard
Abstract: Quasi-public institutions are significant but unsung players in the contemporary international financial order. What can be understood as quasi-public institutions (QPIs) have been created by states or private associations to provide a means of mediating private capital with public value, typically attracting domestic and international investment in order to foster and further a domestic agenda that has strong support from the broader population. As such they fit awkwardly with common perceptions of the international political economy as dominated institutions that reflect either state or market interests. QPIs do both and have emerged as institutional responses to domestic crises that then go on to have a role in shaping the world economy. QPIs that issue collaterized securities from mortgage credit, be they public or private in origin, reflect this institutional form given that their purpose is to bring together private capital and public value. This purpose also makes QPIs sensitive to everyday politics, given that they were created to reflect a broad social purpose rather than only elite interests. This article discusses the development of QPIs for mortgage bonds in a liberal market economy, the U.S., and a coordinated market economy, Denmark. I suggest that QPIs’ values have been challenged by de-regulatory and re-regulatory trends in recent decades. I suggest that QPIs call upon us to question how we identify actors in the international financial order as either public or private, and the importance of everyday politics in fostering institutional innovations that have significant knock-on effects for the world economy.
URI: http://hdl.handle.net/10398/7333
Date: 2008-05-07

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