Since the 1970s, financial crises have been a consistent feature of the international economy, warranting study by economists and political scientists alike. Economists have made great strides in their understanding of the dynamics of crises, with two potentially overlapping stories rising to the fore. Global crises appear to occur highly amid global imbalances—when some countries run large current account deficits and others, large surpluses. A second story emphasizes credit booms—financial institutions greatly extend access to credit, potentially leading to bubbles and subsequent crashes.
Global imbalances are, in part, the product of politically contested processes. Imbalances would be impossible if states did not choose to liberalize (or not to liberalize) their capital accounts. Global political structures—whether international institutions seeking to govern financial flows, or hierarchies reflecting an economic power structure among states—also influence the ability of the global system to resolve global imbalances. Indeed, economists themselves are increasingly finding evidence that the international economy is not a flat system, but a network where some states play larger roles than others.
Credit booms, too, and the regulatory structures that produce them, result from active choices by states. The expansion of the financial sector since the 1970s, however, took place amid a crucible of fire. Financial deregulation was the product of interest group knife-fights, states’ vying for position or adapting to technological change, and policy entrepreneurs’ seeking to enact their ideas.
The IPE (international political economy) literature, too, must pay attention to post-2008 developments in economic thought. As financial integration pushes countries to adopt the monetary policies of the money center, the much-discussed monetary trilemma increasingly resembles a dilemma. Whereas economists once thought of expanded access to credit as “financial development,” they increasingly lament the preponderance of “financialized” economies. While the experimentalist turn in political science heralded a great search for cute natural experiments, economists are increasingly turning to the distant past to understand phenomena that have not been seen for some time. Political scientists might benefit from returning to the same grand theory questions, this time armed with more rigorous empirical techniques, and extensive data collected by economic historians.
Jessica Anderson and Amanda Murdie
Empirical international relations (IR) theory developed three generalized statements regarding why human rights abuses occur. First, human rights abuses are a way for an unrestrained state, especially the executive branch and its agents, to try to control individuals and hold on to power. Second, respect for human rights is an international norm, and international socialization and pressure about this norm can, in certain situations, affect behavior. Third, the codification of human rights norms into international treaties may influence behavior but, similar to our understanding of the effect of other treaties on state behavior, states only bind themselves weakly, and certain conditions are necessary for treaties to affect human rights.
Women are playing an increasingly significant role in terrorism. As men are progressively targeted by security personnel, using female operatives provides terrorist organizations with a “win-win” scenario; if security forces avoid invasively searching women for fear of outraging the local conservative population (based on social norms of women’s modesty and the honor code), women are the ideal stealth operatives. If security personnel are too aggressive in searching women, they aid terrorist recruitment by outraging the men in that society and providing the terrorists with propaganda that “our women” are being violated. In most conflicts, women remain an untapped resource. Recruiting women allows terrorist organizations to access an additional 50% of the population. Female attacks generate greater media attention than those conducted by men. This is especially relevant when media attention is one of the terrorists’ main objectives. Although women’s involvement in terrorist and extremist activities is not a recent development, their presence as frontline activists, propagandists, and recruiters is increasing around the globe.