Critical macro-finance: A theoretical lens

By Daniela Gabor. Finance and Society, 2020

113 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/dc0c2f0e51a8f51880f1d50dbc75cfae7796bb51