Tag Archives: Zingales

Rajan & Zingales about populism & (central) banking

Mark Roe quoted in Rajan & Zingales (2003). Presented without comment:

“The U.S. financial system on the eve of World War I was primarily a much fragmented banking system. As Roe (1994) argues, this fragmentation has historically been the result of a populist fear of large financial institutions. In part, this fear was motivated by political rivalry between states and the fear that, if unchecked, New York would control the rest of the country through its strong banks” (p. 3).


Rajan, R. G. & Zingales, L., (2003). Banks and Markets. The Changing Character of European Finance. Cambridge, Mass (NBER working paper series).

Roe, M. J., (1994). Strong Managers, Weak Owners: The Political Roots of American Corporate
Finance. Princeton University Press, Princeton.

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Capitalism and the Forgotten Role of Credit

Are you an economist? Can you explain to a fellow citizen or economist what characterises capitalism? In my experience, few economists and fellow students don’t have a clear picture – and I used to be one of them. If they do, they usually go about a market economy, whose features (trade and prices) they then start off reciting. Consequently in the public discussion, we mix up a market economy with capitalism. With this I want to offer some Schumpeterian inspiration on that topic:

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