Ch 13: The Financialized State
Mike Rafferty and
Bruno Tinel ()
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Dick Bryan: The University of Sydney
David Harvie: University of Leicester
Mike Rafferty: The University of Sydney
Bruno Tinel: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
In this chapter, we explore states' strategic use of financial ways of thinking in policy formation, resulting in the "financialization" of many aspects of state policy. Specifically, we argue that, following Randy Martin's formulation, a "social logic of the derivative" is being incorporated into the design of state intervention. Paying particular attention to leverage and liquidity we develop three key propositions, namely, that this derivative logic is changing, and even erasing, earlier distinctions between: (i) the state and financial markets; (ii) those state activities-namely, monetary and fiscal policy-once thought to be formally discrete; and (iii) finance and community or social policy. We illustrate our argument with examples of specific policies and initiatives-such as Quantitative Easing, bank liquidity guarantees, and the social impact bond-drawn primarily from the United States and the United Kingdom.
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Published in Christian Borch; Robert Wosnitzer. The Routledge Handbook of Critical Finance Studies, Routledge, pp.261-277, 2020, 9781138079816
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-02955815
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