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Financial Crisis Management from the Perspective of National MPs: A Qualitative Assessment

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  • René M. Mittelstädt

    (University of Finance and Administration)

Abstract

Background. Financial crises have characterized economic history since the Roman Empire. Despite intensive political debate and extensive scientific research, parliaments in their role as legislators have failed to develop effective protection mechanisms. The example of the financial crisis of 2008 showed a major lack of political foresight with regard to the long-term consequences of decisions. Aim. The paper aims to provide insights into how financial politicians use their individual knowledge in policymaking and how knowledge management tools can help achieve financial market stability. Methods. Seven qualitative interviews with Members of national Parliaments in Europe were conducted in mid-2023. The evaluation was carried out using qualitative content analysis. Results. The results show that while the majority have the skills and understanding, the topic itself is underrepresented in everyday parliamentary life. The article concludes with a discussion of the need to introduce knowledge management systems in the parliamentary context. Practical relevance. This paper helps to uncover structural knowledge deficits among MPs. Knowledge management instruments could provide easy-to-implement support.

Suggested Citation

  • René M. Mittelstädt, 2024. "Financial Crisis Management from the Perspective of National MPs: A Qualitative Assessment," ACTA VSFS, University of Finance and Administration, vol. 18(1), pages 21-40.
    • Handle: RePEc:prf:journl:v:18:y:2024:i:1:p:21-40
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    References listed on IDEAS

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    1. Csiszárik-Kocsir, Ágnes & Varga, János & Garai-Fodor, Mónika, 2021. "Knowledge About Past and Present Financial Crises in Relation to Financial Education," Public Finance Quarterly, Corvinus University of Budapest, vol. 66(2), pages 211-231.
    2. Thornton, M. K. & Thornton, R. L., 1990. "The Financial Crisis of A. D. 33: A Keynesian Depression?," The Journal of Economic History, Cambridge University Press, vol. 50(03), pages 655-662, September.
    3. Carmen M. Reinhart & Kenneth S. Rogoff, 2014. "This Time is Different: A Panoramic View of Eight Centuries of Financial Crises," Annals of Economics and Finance, Society for AEF, vol. 15(2), pages 215-268, November.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    5. Rienks, Harm, 2023. "Corruption, scandals and incompetence: Do voters care?," European Journal of Political Economy, Elsevier, vol. 79(C).
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    More about this item

    Keywords

    Decision-making; Financial crises; Financial Policy; Knowledge Management; Member of Parliament; Parliament; Policymaking;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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