Political economy and financial regulation: a comparative analysis of the consumer default debt market in the United States of America and the European Union

This article advances a politically informed approach to studying the geographical unevenness of the development financial markets by undertaking a comparative analysis of the operation, governance, and regulation of the debt sale and purchase market (DSPM) for default consumer debt in the USA and the European Union. The findings demonstrate regional and interregional variations are attributable to distinctive political economies that determine whether a DSPM becomes embedded or is repelled. A more nuanced approach to financial policy development that is more sensitive to the distinctive geographical context of regulatory spaces is proposed.