Was United States Financial Liberalisation in the 1980s Inspired by the Neoliberal Model? (1913–2013)
Résumé
This chapter questions the hypothesis that financial deregulation in the United States in the 1980s was a consequence of neoliberal influence applied to the financial sector. Our method based on the calculation of an annual index of financial liberalisation follows the IMF methodology. The analysis covers the period 1913–2013. The overall financial liberalisation index reveals that the process of financial liberalisation is unique in United States history, both in terms of temporality (1972–1999) and amplitude (the index rises from 0.42 to 1). Until the beginning of the 1980s, financial liberalisation appeared more as an a posteriori endorsement of the evolution of banking practices and of the circumvention of previous legislation, than as an assertive desire to restore the discipline of unfettered markets. However, it took a different turn in the mid-1980s and in the following two decades by relying on the self-regulation of market players based on their own internal control procedures. This “neo-liberal” turn can be explained by the adherence to the principles of market efficiency but also by the inability of policymakers to address the fragmentation of United States regulatory authorities.