Critical macro-finance: A theoretical lens

Gabor, Daniela

Abstract

This forum contribution outlines four propositions of the critical macro-finance approach: (1) US-led financial globalization has structurally evolved around market-based finance, driven by the production of new asset classes and the Americanization of national financial systems with changing practices for producing liquidity; (2) global finance is a set of interconnected, hierarchical balance sheets, increasingly subject to time-critical liquidity; (3) credit creation in market-based finance involves new forms of money (systemic liabilities); and (4) market-based finance structurally requires a derisking state, for both systemic liabilities and for new asset classes. The precise contours of the derisking state are determined through political struggles.

• Journal Article Type: Article
• Acceptance Date: Apr 1, 2020
• Online Publication Date: May 28, 2020
• Publication Date: May 28, 2020
• Deposit Date: Nov 9, 2020
• Publicly Available Date: Nov 11, 2020
• Journal: Finance and Society
• Print ISSN: 2059-5999
• Publisher: Finance and Society
• Peer Reviewed: Peer Reviewed
• Volume: 6
• Issue: 1
• Pages: 45-55
• DOI: https://doi.org/10.2218/finsoc.v6i1.4408
• Public URL: https://uwe-repository.worktribe.com/output/6726597