Reconsidering Systemic Fear and the Stock Market: A Reply to Baines and Hager

Reconsidering Systemic Fear and the Stock Market: A Reply to Baines and Hager
McMahon, James. (2021). Review of Capital as Power. Vol. 2. No. 1. August. pp. 30-70. (Article - Journal; English).

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Abstract or Brief Description

This article responds to Baines and Hager’s recent critique of the capital-as-power model of the stock market. Proposed by Bichler and Nitzan, this model seeks to explain how financial crises are tied to the concept of ‘systemic fear’. Bichler and Nitzan tested their initial model on US data, finding a strong correlation between capitalist power (as they measure it) and systemic fear. However, when Baines and Hager extended the model to four other countries, they found conflicting results. I respond to Baines and Hager, and argue that they were perhaps too quick to dismiss systemic fear as a useful concept. I re-examine systemic fear in twelve countries, and find that (with a few exceptions), it correlates with capitalist power. These results suggest that the notion of ‘systemic fear’ is useful for studying both capitalist crisis and national diversity in capitalist development.



Publication Type

Article - Journal

Commentary on

Financial Crisis, Inequality, and Capitalist Diversity: A Critique of the Capital as Power Model of the Stock Market
Baines, Joseph and Hager, Sandy Brian. (2020). New Political Economy. Vol. 25. No. 1. pp. 122-139. (Article - Journal; English).


capitalization capital as power sabotage stock market systemic fear


BN Money & Finance
BN Power
BN Region - Asia
BN Region - Africa
BN Region - Europe
BN Region - Latin America & Caribbean
BN Region - North America
BN Region - Pacific
BN Resistance
BN Value & Price
BN Business Enterprise
BN Capital & Accumulation
BN Comparative
BN Crisis
BN Distribution

Depositing User

Jonathan Nitzan

Date Deposited

09 Sep 2021 20:38

Last Modified

31 Oct 2021 19:58


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