The Credit Crisis: A European View
Strange, Susan. “The Credit Crisis: A European View,” SAIS Review 3, no. 2 (1983): 171-181.
Strange here uses the term crisis, but notes that the implication that some sort of solution is imminent is less than certain. She suggests that the world economic crisis has three interrelated aspects: unemployment, ‘flagging trade’, and unstable money. As in ‘The Management of Surplus Capacity: Or how does theory stand up to protectionism 1970s style?’ (1979) she shows some scepticism to the arguments that demonise protectionism, and suggests this is an essentially ideological position that would not repay global implementation. After briefly rehearsing the global financial history of the previous decade, Strange suggests that financial regulation which in the last analysis is dependent on certain sovereign states, can never be disinterested. As she would argue in more extended analyses later, she sees the role of the American financial system as destabilising because of the priority it gives to the interests of the domestic political system. Indeed until the United States is willing to ‘lead’ the global system, instead of working in its own interest, those interests will be compromised. Strange, as she would do often in future works, suggests a pragmatic acceptance of American reach over the global system, and suggests a sort of civilising mission to educate them into responsible leadership.
Keywords: Europe; Hegemony; Money and Finance; United States