Publication

This paper examines the dynamics of financial markets and crises in general, and emerging markets in particular. The author argues that although markets are made of techniques, daily transactions, and huge volumes, they remain social constructs. At the very heart of financial transactions lies the question of confidence, which is a central issue in capturing financial dynamics and financial crises. The author concludes that underscoring the political economy and sociological dimensions is essential if one wants to understand the confidence game. This paper is part of a larger research project that has been presented at several universities in Oxford, Paris, and Washington, and consolidated in a book entitled "The Political Economy of Emerging Markets: Actors, Institutions, and Financial Crises in Latin America", by Javier Santiso.