Abstract
The close relationship between governments and their central banks generates risks for both partners. This paper presents an original qualitative empirical approach based on textual analysis of the United States of America, China, and their Central Banks’ respective communications. These financial communications are the subject of comparison through a textual analysis to determine these actors’ positions in the “cultural theory” and, more widely, the sociology of risk. The risk profiles identified of the United States of America Federal government and the People’s Bank of China do not necessarily correspond to their legal status and economic role. These results also shed light on the fact that the cultural background cannot be separated from the risk perception in these countries. However, an eye needs to be kept on the geopolitics and securities risk factors that can influence the global economy’s evolution.
Highlights
Global borrowing has been overgrowing so fast that many are ringing the alarm about its sustainability
Companies’ capitalizations are often worth more than twice their real values, which has led to a speculative bubble worth trillions of U.S dollars that can explode at any time
Discourse on Risk and Choice of Material. The purpose of this part is the comparison of the discourses held around the concept of risk by the two entities, the government, and the central bank, through the textual analysis to determine these actors’ positions in the “cultural theory.”
Summary
Global borrowing has been overgrowing so fast that many are ringing the alarm about its sustainability. This fourth wave is the largest, fastest, and most broad-based of them all, and experience has taught us that when countries’ debts reach such a high level, one has to expect a worldwide economic crisis or economic reset This time, it could be even more violent than the preceding crises, regarding the globalization of economies and the rising of nationalism from America to Asia passing by Europe. The behavioral economics curriculum that is applying good psychology to economics is involved in this study using the sociology of risk and the “cultural theory” for reading the communication of these four entities This approach will explain how governments and central banks handle this fourth wave in their decision-making. The established results are presented and discussed regarding the theoretical grounding to identify the cultural risk profile of the two more significant economies in the middle of the coming financial crisis
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