Implications of Institutional Dispositions of Neoliberalism

This analysis starts with an assumption that vertical paradigm of neoliberalism positions the state regulation only as a formal center of power, and that non- state institutions (mainly banks) acquire de facto economic and political leverage over the state. Here is a definitive break with the liberal horizontal paradigm (order). State institutions coordinate the vertical system and mediate between the individual institutional pillars. Standard of price setting is determined by oligopolistic and monopolistic prices. In this document, we test the hypothesis in the case of dominating the instruments of the "market" institutions in relation to the regulatory instruments and inefficiently modeled financial markets over the entire financial system, i.e. privileged institutions over the state authority. Specifically, we prove the domination of the market interest rates over the official interest rates, modification of the protective and destructive corporate pattern "too big to fail", as well as aggressive manipulating the selective scope of derivative and high frequency trading.