ABSTRACT

Interests – labor, capital, and landed interests – will battle in the political arena over the structure of a nation’s capitalist institutions. When these battles occur in the wake of a crisis that leads to new political institutions, dramatic changes to the structure of financial institutions are possible; when in the context of preexisting political institutions, financial outcomes are constrained. In this chapter, I detail the expected outcomes based on these general mechanisms. The chapter is broken into two parts: (1) the identification of the relevant actors and their preferences over financial arrangements, the coalitions they may form, and the consequent financial outcomes; and (2) the biasing effects of domestic political institutions over these outcomes.