Revisiting conventional wisdom: does financialization have to leave sovereigns subordinated?

• Authors: Ząbkowicz Anna , Czech Sławomir
• Languages of publication: EN

Abstracts

EN

The financialization process is considered to leave debtor states critically dependent on international financial capital, which may then exercise indirect power over government policy, to the point where the state becomes a hostage to financial markets’ ‘state of confidence’. Such relations between the state and internationalized capital are perceived to come with two strings attached, as the state listens to financial markets because it is in debt and must settle accounts while still requiring external financing; and as financial deepening or credit is considered a vehicle of economic growth. It is the contention of this paper that conventional wisdom as to the correctness of debtor-state behavior in the above circumstances is open to challenge.

Keywords

EN

neoliberal capitalism; financialization; public debt defaulting; wealth effect

• Publisher: Wydział Nauk Ekonomicznych Uniwersytetu Warszawskiego
• Journal: Ekonomia. Rynek, Gospodarka, Społeczeństwo
• Year: 2016
• Issue: 47
• Pages: 135-148

Contributors

author

Ząbkowicz Anna

• Jagiellonian University, Cracow

author

Czech Sławomir

• University of Economics, Katowice

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Identifiers

DOI

10.17451/eko/47/2016/188