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(De)Financialization and crisis in Eastern Europe

Gabor, Daniela



This paper investigates how financialization pressures in Eastern Europe shaped vulnerabilities to the 2007 global deleveraging and to what extent policy responses to crisis have sought to reinforce or delink from financialization. It explores the technical devices underpinning financialization, linked to the dominance of carry-trade strategies in foreign-owned banks and non-resident investors, validated by a set of central bank practices that changed the relationship between wholesale money markets and currency markets. Three distinct periods in the timeline of crisis show that central bank interventions were crucial in resuscitating financialization and that attempts to re-embed finance cannot be successful if public debt dynamics are neglected.


Gabor, D. (2010). (De)Financialization and crisis in Eastern Europe. Competition and Change, 14(3-4), 248-270.

Journal Article Type Article
Publication Date Dec 1, 2010
Journal Competition and Change
Print ISSN 1024-5294
Publisher SAGE Publications
Peer Reviewed Peer Reviewed
Volume 14
Issue 3-4
Pages 248-270
Keywords Eastern Europe, financial crisis, financialization, central bank liquidity management, quantitative easing
Publisher URL