Participant Info

First Name
Erin
Last Name
Lockwood
Country
USA
University
University of California, Irvine
Keywords
international political economy, global financial politics, derivatives, financial regulation, risk and uncertainty, authority and legitimacy in international politics
Availability
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Personal Info

About Me

I am an assistant professor in the Department of Political Science at the University of California, Irvine. I received my Ph.D. in Political Science from Northwestern University in 2017 and both a B.A. in International Studies and a B.S. in Economics from American University in 2011.

My research is on the social relations and practices that contribute to the legitimacy of global derivatives markets and the enduring authority of financial actors following the 2007-2009 financial crisis. My most recent project examines the construction and regulation of over-the-counter derivatives markets before and after the crisis. It addresses two specific questions: How did the market for derivatives traded outside traditional exchanges grow so large and crisis-prone with so little public regulation? And, why, given derivatives’ contribution to the 2008 financial crisis, were post-crisis regulatory reforms so limited? I argue that the answer lies in the authority of financial market actors and in public regulators’ perception of them as competent managers of risk, based on a set of practices that assured regulators that banks were limiting losses, guarding against default, and pricing assets accurately. My conclusions are based on an interpretive analysis of an original body of primary source regulatory and industry speeches, testimony, and reports. I find that particular market practices, including risk models and standardized contracts, made regulators overly confident in the benefits of derivatives and the abilities of market actors to prevent crises. Many of these practices failed to prevent systemic contagion during the crisis, but because they were so deeply entrenched in the operation of the market, the space for regulatory change was and remains highly constrained.

I am also interested in the consequences of central bank norms and policies, as propagated through both formal and informal institutions, for the developing world; in the history of the Bank for International Settlements and its role in financial oversight and stability; and in political dynamics in other (non-financial) environments characterized by incalculable uncertainty, such as international security.

Recent Publications

“Incomplete Control: The Circulation of Power in Finance” (with Stephen C. Nelson). In Protean Power: Exploring the Uncertain and Unexpected in World Politics. Eds. Peter J. Katzenstein and Lucia A. Seybert. New York: Cambridge University Press, forthcoming in February 2018.

“The Politics and Practices of Central Clearing in OTC Derivatives Markets.” In Governing the World’s Biggest Market: The Politics of Derivatives Regulation After the 2008 Crisis. Eds. Eric Helleiner, Stefano Pagliari, and Irene Spagna. Oxford University Press, forthcoming in 2018.

“The Global Politics of Central Banking: A View from Political Science.” Marco Einaudi Center for International Studies Working Paper Series, No. 5-16. July 2016.

“Predicting the Unpredictable: Value-at-Risk, Performativity, and the Politics of Financial Uncertainty.” Review of International Political Economy 22(4) 2015: 719-756.

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