Financial Policymaking after Crises: Public vs. Private Interests

What drives actual government policies after financial crises? In this paper, we fi rst present a simple model of post-crisis policymaking driven by both public and private interests. Using the most comprehensive dataset available on de-facto liberalization over seven policy domains across 94 countries between 1973 2015, then establish that nancial crises can lead to more intervention process re-regulation in markets. Consistent with demand channel from (interests) policymakers, nd interventions are common only democratic countries. However, using plausibly exogenous political setting -i.e., term limits- muting policymakers' accountability, show leaders who do not have re-election concerns substantially likely intervene markets crises, ways promote their These privately-motivated cannot be associated immediate crisis response, operate via controversial favour incumbent banks revolving doors institutions.