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Faruk Ulgen

Grenoble University, Faculty of Economics, Faculty Member

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Address: Grenoble Faculty of Economics, University Grenoble Alpes
1241 rue des residences BP 47 38040 Grenoble Cedex 09-France

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Ioannis N Grigoriadis

Bilkent University

Northeastern University

University College Cork

Aykut Kibritçioğlu

Türkisch-Deutsche Universität

University of Cologne

University of the Basque Country, Euskal Herriko Unibertsitatea

Macquarie University

Ramiro Barberena

National Scientific and Technical Research Council

Marie Christine Duggan

Keene State College

Shabib H . Syed

University of the Punjab, Lahore, Pakistan

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Papers by Faruk Ulgen

Green products in the insurance market

Wiadomości Ubezpieczeniowe

The decarbonization of economy and, more specifically, the widespread deployment of systems that ... more The decarbonization of economy and, more specifically, the widespread deployment of systems that produce energy from renewable sources require substantial insurance cover, as such a transition process contains the seeds of new individual and systemic risks. The new regulations in Europe, aimed at creating incentives for transition to green economy, with the changes in consumer preferences, support the demand for insurance products tied to the sector of renewable energy, energy efficiency and sustainable mobility. They are seeking at building up an appropriate institutional environment to push the demand for green insurance products. Faced with this challenge, the purpose of this article is to present green insurance products, review the legislative foundations and summarize the weaknesses that have emerged in the creation and management of such innovative products.

Towards de-financialization MALCOLM SAWyER

Underdeveloped financial markets’ infrastructure of emerging market economies: assessment of underlying challenges and suggested policy responses SHAzIA GHANI

Revue d’histoire de la pensée économique. 2020 – 2, n° 10. varia

Revue d'histoire de la pensée économique 2020-2, n° 10 varia Type de publication: Revue Résumé: L... more Revue d'histoire de la pensée économique 2020-2, n° 10 varia Type de publication: Revue Résumé: La Revue d'histoire de la pensée économique publie des articles originaux en histoire de la pensée économique, mais aussi en philosophie, épistémologie et méthodologie économiques, ainsi que des recensions d'ouvrages. Nombre de pages: 374

After Thirty Years

New Contributions to Monetary Analysis, 2013

Financial liberalization, financial development and economic growth in LDCs

Journal of International Development, 2003

The objective of this paper is to survey what is actually known about the finance–growth relation... more The objective of this paper is to survey what is actually known about the finance–growth relationship based on theory and empirical work. We point out that traditional theoretical models linking financial development and economic growth do not pay sufficient attention to insights emerging from modern information economics. Markets with asymmetric information are not in general constrained Pareto efficient; and increased banking sector competition, following financial liberalization, will not necessarily induce efficient financial intermediation. Increased competition is likely to erode franchise values, which may, in turn, generate an unstable banking environment where gambling behaviour on the part of the banks is prevalent. Increased competition can also discourage relationship‐banking, and it disturbs what may actually be a constrained efficient mode of contracting in a dynamic setting characterized by asymmetric information. We argue that these problems are further aggravated by...

An Institutional Framework for a Sustainable Eco-Transition and Financial Regulation

Journal of Economic Issues

An Evolutionary Perspective on the Endogenous Instability of Capitalist Dynamics

Central European Economic Journal

This article is a theoretical and conceptual exploration into the study of the dynamics of financ... more This article is a theoretical and conceptual exploration into the study of the dynamics of financial innovations and their consequences in market economies. Drawing upon the works of Schumpeter and Minsky in an institutionalist and evolutionary tradition, the article puts forward the monetary and financial features of the 21st century economies and the recurrent systemic financial instabilities generated within the context of the financialization process. It then calls for alternative regulatory reforms capable of leading to sustainable economic development. The originality of the analysis lies in the fact that the micro-dynamics of innovations may result in both creative and destructive outcomes since there are some crucial differences between entrepreneurial innovations à la Schumpeter as the positive force in economic development, and financial innovations à la Minsky as the source of instabilities. The article then focuses on the weaknesses and inconsistencies of loosely regulat...

From Public Choice to Minskyan collective action: the case for macro rationality-based financial regulation

Edward Elgar Publishing eBooks, 2022

Renewal of Public Action

New perspectives in the co-production of public policies, public services and common goods

Public-Owned Enterprises (POEs) are generally large economic enterprises owned and governed by st... more Public-Owned Enterprises (POEs) are generally large economic enterprises owned and governed by state institutions. POEs generally are the sole or the main provider of the key public goods and services as water, electricity, transport, telecommunications, and postal services. If administered efficiently, the POEs are important for national development and perspective of natural economic resources. The concern is how accurately these monopolistic enterprises are organized in aspects of administrative and managerial perspectives to function as effectively as possible for the objectives they are created. Therefore an overall summary of the public-owned enterprises is presented through their process of emerging, privatization, and evolution in Albania, southeast Europe. The process was accompanied by shortcomings due to its ad-hoc nature; and associated with negative effects of bad management, governance corruption, and low efficiency of the operational activities and results.

Revue des livres : Jean Cartelier, L’intrus et l’absent. Essai sur le travail et le salariat dans la théorie économique, Presses Universitaires de Paris-Ouest, collection Essais économiques, Paris, 2016, 173 pages, bibliographie en fin d’ouvrage, sans index

n° 10Cette note de lecture de l'ouvrage de Jean Cartelier est convaincue par la démonstration... more n° 10Cette note de lecture de l'ouvrage de Jean Cartelier est convaincue par la démonstration de l'auteur, à savoir que contrairement à l’affirmation reprise par la plupart des théories économiques, le contrat de travail ne saurait être un contrat comme les autres, plus précisément ce contrat, car contrat il y a, ne saurait appartenir à l’espace des contrats marchands

From Bretton Woods and Keynes to 21st century crises: Is there a pilot on board? [De Bretton Woods y Keynes a las crisis del siglo XXI: ¿hay piloto a bordo?]

RePEc: Research Papers in Economics, 2021

Financial Regulation: Collective Action Between Market and State

IASC 2021 "Polycentric governance", May 17, 2021

International audienc

Financial liberalism and new institutional environment : the 2007-08 financial crisis as a (de)regulatory deadlock

RePEc: Research Papers in Economics, Apr 10, 2015

In order to understand economic evolution in the neoliberal era and its pitfalls, this chapter id... more

Decommodification of Financial Regulation and Public Action

Assa 2021 annual meeeting, Jan 3, 2021

International audienceThis article seeks to analyze the institutional roots of the last decades’ ... more International audienceThis article seeks to analyze the institutional roots of the last decades’ financial crises and in particular those of the 2007-2008 systemic failure. These instabilities seem to be mainly due to the liberalization of financial markets since the system-wide liberalization triggered the process of financialization of many sectors of the economy and gave the priority to the financial efficiency criteria within the decision process of market players. Mainly relying on speculative arbitrage, the economic engine is wheeled thanks to the attractiveness of financial innovations that have nurtured rent-seeking operations without supporting the financing of productive activities. I maintain that such an evolution is the great transformation of the New Millennium Capitalism that mainly rests on the institutional transformation of the regulatory structure that is the commodification of financial regulation. The latter has replaced public regulatory mechanisms by private self-regulation systems that rely on market price-directed contractual schemas. Such an institutional transformation has fueled the system-wide process of financialization and led market-based capitalist economies to a highly speculative and macro-economically perverse regime of accumulation. Despite recurrent downturns, speculative return-related wealth keeps increasing and widening the income inequality gap. For instance, even in the aftermath of the 2007-2008 financial turmoil and subsequent market failures, U.S. billionaire wealth almost doubled between 2010 and 2020, increasing 80.6 percent in 2020 dollars, while the median wealth of U.S. households only increased 15.1 percent between 2010 and 2016. From an institutionalist perspective, this article maintains that contrary to the usual doctrinal assertions, market-related liberal regulation prevents finance from contributing to economic development and restrains public action from supervising markets without generating social dilemmas. Without an appropriate organization and supervision, financial markets do not lead to a social optimum since they suffer several inconsistencies like the discrepancy between micro-rationality and macro-coherence, cognitive bias, and the publicness of financial stability. The viability of market economies depends on the sustainability of financial operations that requires specific public action aimed at systemic stability. In order to prevent the catastrophic consequences of financialization, financial regulation must be decommodified and financial stability must be handled as a common good

Stabilizing endogenous instability: a contradiction in terms? Proposals for an institutionalist reform of financial regulation

ASSA 2019 annual meeting "Institutional economics in the "True age of uncertainty"", Jan 4, 2019

International audienc

Sustainable financing for the development process : what alternatives ?

RePEc: Research Papers in Economics, 2019

International audienc

James Steuart's Principles as a Modern Analysis of Monetary Economy

Leçons d'une crise financière: contrôle social comme innovation règlementaire

In light of the 2007-08 crisis, this article aims at studying the need for innovative alternative... more In light of the 2007-08 crisis, this article aims at studying the need for innovative alternative financial regulation in order to improve the mechanisms of social control in highly liberalized and financialized capitalist economies. From this perspective, the first section presents the foundations of the oppositions on the issue of social control and regulation and assesses the relevance of liberalized finance self-regulation process assumed to spontaneously guarantee social consistency. The second section brings to the fore the monetary and financial characteristics of capitalism and argues, in an institutionalist vein, in favor of an alternative financial regulation as a social control device consistent with the systemic stability and viability.

La stabilité de l'espace monétaire européen et le rôle international de l'euro

La situation conflictuelle entre une difficile maitrise des desequilibres financiers et des compt... more La situation conflictuelle entre une difficile maitrise des desequilibres financiers et des comptes publics et le besoin d'une croissance creatrice d'emplois traduit la necessite de reconsiderer certains principes fondateurs des systemes monetaires et financiers. Dans cette perspective, la premiere section rappelle les principales difficultes dans la stabilisation interne et internationale de l'euro. La deuxieme section etudie les caracteristiques du SMI et considere la possibilite d'un role positif de l'euro dans la redefinition des conditions pour une plus grande coordination/cooperation dans les relations monetaires. La conclusion presente quelques pistes de reflexion a l'aune de l'actualite de fin 2011.

Green products in the insurance market

Wiadomości Ubezpieczeniowe

The decarbonization of economy and, more specifically, the widespread deployment of systems that ... more The decarbonization of economy and, more specifically, the widespread deployment of systems that produce energy from renewable sources require substantial insurance cover, as such a transition process contains the seeds of new individual and systemic risks. The new regulations in Europe, aimed at creating incentives for transition to green economy, with the changes in consumer preferences, support the demand for insurance products tied to the sector of renewable energy, energy efficiency and sustainable mobility. They are seeking at building up an appropriate institutional environment to push the demand for green insurance products. Faced with this challenge, the purpose of this article is to present green insurance products, review the legislative foundations and summarize the weaknesses that have emerged in the creation and management of such innovative products.

Towards de-financialization MALCOLM SAWyER

Underdeveloped financial markets’ infrastructure of emerging market economies: assessment of underlying challenges and suggested policy responses SHAzIA GHANI

Revue d’histoire de la pensée économique. 2020 – 2, n° 10. varia

Revue d'histoire de la pensée économique 2020-2, n° 10 varia Type de publication: Revue Résumé: L... more Revue d'histoire de la pensée économique 2020-2, n° 10 varia Type de publication: Revue Résumé: La Revue d'histoire de la pensée économique publie des articles originaux en histoire de la pensée économique, mais aussi en philosophie, épistémologie et méthodologie économiques, ainsi que des recensions d'ouvrages. Nombre de pages: 374

After Thirty Years

New Contributions to Monetary Analysis, 2013

Financial liberalization, financial development and economic growth in LDCs

Journal of International Development, 2003

The objective of this paper is to survey what is actually known about the finance–growth relation... more The objective of this paper is to survey what is actually known about the finance–growth relationship based on theory and empirical work. We point out that traditional theoretical models linking financial development and economic growth do not pay sufficient attention to insights emerging from modern information economics. Markets with asymmetric information are not in general constrained Pareto efficient; and increased banking sector competition, following financial liberalization, will not necessarily induce efficient financial intermediation. Increased competition is likely to erode franchise values, which may, in turn, generate an unstable banking environment where gambling behaviour on the part of the banks is prevalent. Increased competition can also discourage relationship‐banking, and it disturbs what may actually be a constrained efficient mode of contracting in a dynamic setting characterized by asymmetric information. We argue that these problems are further aggravated by...

An Institutional Framework for a Sustainable Eco-Transition and Financial Regulation

Journal of Economic Issues

An Evolutionary Perspective on the Endogenous Instability of Capitalist Dynamics

Central European Economic Journal

This article is a theoretical and conceptual exploration into the study of the dynamics of financ... more This article is a theoretical and conceptual exploration into the study of the dynamics of financial innovations and their consequences in market economies. Drawing upon the works of Schumpeter and Minsky in an institutionalist and evolutionary tradition, the article puts forward the monetary and financial features of the 21st century economies and the recurrent systemic financial instabilities generated within the context of the financialization process. It then calls for alternative regulatory reforms capable of leading to sustainable economic development. The originality of the analysis lies in the fact that the micro-dynamics of innovations may result in both creative and destructive outcomes since there are some crucial differences between entrepreneurial innovations à la Schumpeter as the positive force in economic development, and financial innovations à la Minsky as the source of instabilities. The article then focuses on the weaknesses and inconsistencies of loosely regulat...

From Public Choice to Minskyan collective action: the case for macro rationality-based financial regulation

Edward Elgar Publishing eBooks, 2022

Renewal of Public Action

New perspectives in the co-production of public policies, public services and common goods

Public-Owned Enterprises (POEs) are generally large economic enterprises owned and governed by st... more Public-Owned Enterprises (POEs) are generally large economic enterprises owned and governed by state institutions. POEs generally are the sole or the main provider of the key public goods and services as water, electricity, transport, telecommunications, and postal services. If administered efficiently, the POEs are important for national development and perspective of natural economic resources. The concern is how accurately these monopolistic enterprises are organized in aspects of administrative and managerial perspectives to function as effectively as possible for the objectives they are created. Therefore an overall summary of the public-owned enterprises is presented through their process of emerging, privatization, and evolution in Albania, southeast Europe. The process was accompanied by shortcomings due to its ad-hoc nature; and associated with negative effects of bad management, governance corruption, and low efficiency of the operational activities and results.

Revue des livres : Jean Cartelier, L’intrus et l’absent. Essai sur le travail et le salariat dans la théorie économique, Presses Universitaires de Paris-Ouest, collection Essais économiques, Paris, 2016, 173 pages, bibliographie en fin d’ouvrage, sans index

n° 10Cette note de lecture de l'ouvrage de Jean Cartelier est convaincue par la démonstration... more n° 10Cette note de lecture de l'ouvrage de Jean Cartelier est convaincue par la démonstration de l'auteur, à savoir que contrairement à l’affirmation reprise par la plupart des théories économiques, le contrat de travail ne saurait être un contrat comme les autres, plus précisément ce contrat, car contrat il y a, ne saurait appartenir à l’espace des contrats marchands

From Bretton Woods and Keynes to 21st century crises: Is there a pilot on board? [De Bretton Woods y Keynes a las crisis del siglo XXI: ¿hay piloto a bordo?]

RePEc: Research Papers in Economics, 2021

Financial Regulation: Collective Action Between Market and State

IASC 2021 "Polycentric governance", May 17, 2021

International audienc

Financial liberalism and new institutional environment : the 2007-08 financial crisis as a (de)regulatory deadlock

RePEc: Research Papers in Economics, Apr 10, 2015

In order to understand economic evolution in the neoliberal era and its pitfalls, this chapter id... more

Decommodification of Financial Regulation and Public Action

Assa 2021 annual meeeting, Jan 3, 2021

International audienceThis article seeks to analyze the institutional roots of the last decades’ ... more International audienceThis article seeks to analyze the institutional roots of the last decades’ financial crises and in particular those of the 2007-2008 systemic failure. These instabilities seem to be mainly due to the liberalization of financial markets since the system-wide liberalization triggered the process of financialization of many sectors of the economy and gave the priority to the financial efficiency criteria within the decision process of market players. Mainly relying on speculative arbitrage, the economic engine is wheeled thanks to the attractiveness of financial innovations that have nurtured rent-seeking operations without supporting the financing of productive activities. I maintain that such an evolution is the great transformation of the New Millennium Capitalism that mainly rests on the institutional transformation of the regulatory structure that is the commodification of financial regulation. The latter has replaced public regulatory mechanisms by private self-regulation systems that rely on market price-directed contractual schemas. Such an institutional transformation has fueled the system-wide process of financialization and led market-based capitalist economies to a highly speculative and macro-economically perverse regime of accumulation. Despite recurrent downturns, speculative return-related wealth keeps increasing and widening the income inequality gap. For instance, even in the aftermath of the 2007-2008 financial turmoil and subsequent market failures, U.S. billionaire wealth almost doubled between 2010 and 2020, increasing 80.6 percent in 2020 dollars, while the median wealth of U.S. households only increased 15.1 percent between 2010 and 2016. From an institutionalist perspective, this article maintains that contrary to the usual doctrinal assertions, market-related liberal regulation prevents finance from contributing to economic development and restrains public action from supervising markets without generating social dilemmas. Without an appropriate organization and supervision, financial markets do not lead to a social optimum since they suffer several inconsistencies like the discrepancy between micro-rationality and macro-coherence, cognitive bias, and the publicness of financial stability. The viability of market economies depends on the sustainability of financial operations that requires specific public action aimed at systemic stability. In order to prevent the catastrophic consequences of financialization, financial regulation must be decommodified and financial stability must be handled as a common good

Stabilizing endogenous instability: a contradiction in terms? Proposals for an institutionalist reform of financial regulation

ASSA 2019 annual meeting "Institutional economics in the "True age of uncertainty"", Jan 4, 2019

International audienc

Sustainable financing for the development process : what alternatives ?

RePEc: Research Papers in Economics, 2019

International audienc

James Steuart's Principles as a Modern Analysis of Monetary Economy

Leçons d'une crise financière: contrôle social comme innovation règlementaire

In light of the 2007-08 crisis, this article aims at studying the need for innovative alternative... more In light of the 2007-08 crisis, this article aims at studying the need for innovative alternative financial regulation in order to improve the mechanisms of social control in highly liberalized and financialized capitalist economies. From this perspective, the first section presents the foundations of the oppositions on the issue of social control and regulation and assesses the relevance of liberalized finance self-regulation process assumed to spontaneously guarantee social consistency. The second section brings to the fore the monetary and financial characteristics of capitalism and argues, in an institutionalist vein, in favor of an alternative financial regulation as a social control device consistent with the systemic stability and viability.

La stabilité de l'espace monétaire européen et le rôle international de l'euro

La situation conflictuelle entre une difficile maitrise des desequilibres financiers et des compt... more La situation conflictuelle entre une difficile maitrise des desequilibres financiers et des comptes publics et le besoin d'une croissance creatrice d'emplois traduit la necessite de reconsiderer certains principes fondateurs des systemes monetaires et financiers. Dans cette perspective, la premiere section rappelle les principales difficultes dans la stabilisation interne et internationale de l'euro. La deuxieme section etudie les caracteristiques du SMI et considere la possibilite d'un role positif de l'euro dans la redefinition des conditions pour une plus grande coordination/cooperation dans les relations monetaires. La conclusion presente quelques pistes de reflexion a l'aune de l'actualite de fin 2011.

" DECOMMODIFYING FINANCIAL REGULATION: IN SEARCH OF SOCIETAL COHERENCE "

Societal coherence of an economy basically relies on its institutional framework that integrates ... more Societal coherence of an economy basically relies on its institutional framework that integrates various elements within a global structure that must display consistency with systemic viability. This issue is studied with regard to the evolution of capitalism toward a speculative accumulation regime through the process of financialisation from the 1980s onwards. The Great Transformation of modern capitalism seems to be the commodification of monetary/financial rules and related regulation. Resting on the assumption that free market’s functioning would result in social optimum, financial liberalisation transformed public regulatory mechanisms into private self-regulation systems. In light of the 2007-08 crisis, this article seeks to question this faith in the market’s self-adjustment capacity and argues that individual rationality-based economic efficiency cannot result in social harmony. It maintains that financial stability should not be entrusted to the vicissitudes of markets. It then suggests the decommodification of financial supervision through alternative public regulation that seeks social stability and economic viability.

THE PRECAUTIONARY PRINCIPLE AND FINANCIAL STABILITY: AN ALTERNATIVE INSTITUTIONAL DESIGN OF MARKET ORGANISATION AND REGULATION

This article seeks to develop a precautionary principle-based approach to financial regulation. F... more This article seeks to develop a precautionary principle-based approach to financial regulation. From an institutionalist perspective, this article puts the emphasis on the monetary characteristics of market-based capitalist economies and argues that market incentives-related financial self-regulation mechanisms often result in societally inconsistent outcomes and must be replaced by public-good-seeking regulatory structures. Indeed market-friendly regulatory structures transform financial markets into a generalised social tool of financialisation and make capitalism fall under a degenerated governance structure. A relevant alternative to such a catastrophe-provoking liberal regulation could rest on the precautionary principle provided that financial stability is a public good, required for the smooth working of market economies. The precautionary principle reveals to be a judicious regulatory guide in the cases where significant societal damage –i.e. systemic instabilities and crises- may occur as it is the case in financial crises. This would require an institutional transformation aiming at providing economies with a regulatory environment that could direct and supervise market actors’ strategies so as to ensure macro-financial stability and societal viability.

RE-EMBEDDING FINANCE IN SOCIETAL DEVELOPMENT: FINANCIAL STABILITY AS A PUBLIC GOOD

This article draws upon Polanyi’s Great Transformation and suggests an institutional framework th... more This article draws upon Polanyi’s Great Transformation and suggests an institutional framework that regards financial stability as a public good which requires an alternative design of the financial organisation of capitalist society to ensure a sustainable societal development. The article develops the major characteristics of money and finance in a market-based capitalist economy which is mainly driven by private-interests and decentralised decisions. Hence it maintains that because of those characteristics, money and finance must be regarded as the unprivatisable spine of the economy. It is argued that systemic stability basically relies on money and financial markets’ stability that cannot be ensured through liberalised market mechanisms and privatised self-regulation schemas. To deal with the “stark utopia” of market fundamentalism and related social catastrophes, capitalist finance should be reframed according to the financial needs of socially sustainable activities.

Introduction: renewal of monetary analysis. Raising the stakes?

Introduction of the book "New Contributions to Monetary Analysis. The foundations of an alternati... more

Introduction: Financial development. The sword of Damocles hanging over the process of economic development

Introduction of the book "Financial Development, Economic Crises and Emerging Market Economies", ... more