Letter: Kindleberger theory applies to more than one hegemon - Financial Times
ft.com
A reader argues that Kindleberger's hegemonic stability theory — built for one dominant lender of last resort — may need rewiring for a world with multiple power centres.
Hegemonic Stability TheoryLender of Last ResortBalance of PowerSystemic Risk
Theory Briefing
- Kindleberger's 1978 classic argued that financial crises require a single hegemon willing to act as lender of last resort.
- The letter challenges the theory's assumption of one dominant power, suggesting stability can emerge from multiple hegemons acting in concert.
- As US dominance is questioned, the debate matters now — who steps in to stop the next global financial panic?