12: Constitutions and financial crisis
Over the past half century the world has been confronted with numerous financial crises: global, regional and country-specific. A socio-psychological factor which is common to all means that financial assets may suddenly lose a large part of their nominal value against a background of popular panic, without necessarily provoking the same effect in the real economy.
How states respond to such financial crises depends partly on circumstances specific to each of them (compare the position of an individual state, with a member of the EU in the euro zone, with a state that relies on international assistance and development aid) and partly on the international environment.
While the immediate responses are generally fiscal and economic, they may also be regulatory. In any event, the overall effect of a fiscal crisis and the responses to it may have profound constitutional significance for the separation of powers within the state, for the relationship of state institutions to supra-national or international institutions and thus for the assumptions on which democratic constitutionalism rests.
This workshop invites contributions from scholars across the world that critically analyse responses to fiscal crises with a view to better understanding the phenomenon, the options for dealing with it and its implications for core constitutional doctrines.