Regulated Capitalism as a 'Stark Utopia': a Polanyian Analysis of the (Im)possibility of Market (Re)embeddedness Through the Financial Transaction Tax in the European Union's Political Economy

After the financial crash of 2008 the intellectual thought of the Austrian-Hungarian scholar Karl Polanyi (1889-1964) has seen a resurgence in academic research to explain the origins of the crisis. His notions of the (dis)embeddedness of markets and the double movement have proven to be useful concepts in the analysis of the origins and effects of the financial crash of 2008. However, currently there is an intellectual debate going on between so called hard- and soft-Polanyian scholars on the understanding of the notion of (re)embedding the market. Soft-Polanyians believe in the possibility of embeddedness and see in this Polanyian idea a call for the social-democratic ideal. Hard-Polanyians on the other hand do not understand Polanyian thought in this way and argue that Polanyi has never believed in the possibility of (re)embedding the market, since attempts to do so can only backfire societally. In addition to an analysis of this ongoing debate Polanyi’s moral and ethical...Show moreAfter the financial crash of 2008 the intellectual thought of the Austrian-Hungarian scholar Karl Polanyi (1889-1964) has seen a resurgence in academic research to explain the origins of the crisis. His notions of the (dis)embeddedness of markets and the double movement have proven to be useful concepts in the analysis of the origins and effects of the financial crash of 2008. However, currently there is an intellectual debate going on between so called hard- and soft-Polanyian scholars on the understanding of the notion of (re)embedding the market. Soft-Polanyians believe in the possibility of embeddedness and see in this Polanyian idea a call for the social-democratic ideal. Hard-Polanyians on the other hand do not understand Polanyian thought in this way and argue that Polanyi has never believed in the possibility of (re)embedding the market, since attempts to do so can only backfire societally. In addition to an analysis of this ongoing debate Polanyi’s moral and ethical approach in the conceptualization of the economy will be addressed in this thesis, with special attention to the notions of market dependency and human livelihood. Ultimately, the different perspectives present in this discussion are used to make an assessment of the potential(s) of the imposition of the financial transaction tax as it is currently underway in the legislative process of the European Union.Show less

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Regulated Capitalism as a 'Stark Utopia': a Polanyian Analysis of the (Im)possibility of Market (Re)embeddedness Through the Financial Transaction Tax in the European Union's Political Economy