The ballooning of central bank balance sheets after the 2007 crisis in core capitalist countries ... more The ballooning of central bank balance sheets after the 2007 crisis in core capitalist countries has attracted critical attentions of economists and financial media. The monetarist economic theory instinctively problematizes such expansion of central bank balance sheets as an inflationary phenomenon. Minskian alternative that questions the neutrality of money in neo-classical economics, however, justifies central bank activism which is necessary to bring capitalism back to stability after inevitable destabilising endogenous credit expansions. Clearly there is a policy convergence in both liberal market economies and co-ordinated market economies whereby central banks use unconventional monetary policies to generate growth and employment. This article proposes an alternative framing of central bank unconventional policies after the 2007 crisis by shifting the focus to the actual role of central banks as holders of long positions on sovereign debt and non-tradable bank assets. In the ...
This article presents a postcolonial analysis of financial citizenship (FC) programmes in Malaysi... more This article presents a postcolonial analysis of financial citizenship (FC) programmes in Malaysia. Drawing on secondary data and on interviews with elites and citizen investors, the paper explores the spatial and historically specific nature of financialisation in a postcolonial context. Specifically, the paper draws out the significance of FC as part of broader nation building objectives in Malaysia from an elite perspective, while also observing the reluctance of citizen investors who are engaging with the equity market to support the formal objectives of the policy. In doing so, it provides an example of the financialisation of everyday life in a distinctive and complex emerging economy context. Moreover, the paper explores these processes from both elite and citizen perspectives, allowing these layered relations within FC to be analysed. The article, therefore, contributes to the financialisation literature by bringing new understandings of elite–citizen relations in postcoloni...
Page 1. Reconceptualizing financial innovation: frame, conjuncture and bricolage Ewald Engelen, I... more Page 1. Reconceptualizing financial innovation: frame, conjuncture and bricolage Ewald Engelen, Ismail Erturk, Julie Froud, Adam Leaver and Karel Williams Abstract This article argues for a reconceptualization of financial ...
ABSTRACT India’s post-GFC digital financial inclusion project has been conveyed by an officially ... more ABSTRACT India’s post-GFC digital financial inclusion project has been conveyed by an officially constructed polysemic narrative that connotes three distinctive semantic fields: (a) post-colonial Indian developmental policies; (b) post-GFC financialising neoliberal financial inclusion programmes; and (c) traditional Hindu religious values of money and wealth. By assembling a semiological conceptual toolbox from the works of Barthes, Eco, and Ricouer we analyse this specific phenomenon of polysemy in India’s financial inclusion narrative. Based on our findings we develop an argument for a connotative approach to economic discourses as a possible alternative to metonymic understanding of the relationship between language and things in studying markets, economy, and neoliberal policies.
Capital Markets Union is a late but right project towards a truly single currency economic zone i... more Capital Markets Union is a late but right project towards a truly single currency economic zone in the EU. However the CMU Green Paper chooses the wrong benchmark of US capital markets and is not based on evidence. The hegemonic corporate governance ideology of shareholder value maximisation that determines the financialised firm behaviour in the US has produced, since the 1980s, malign macroeconomic outcomes resulting in lower private investments, lower wages, regular stock market crises and socially and economically costly misalignment of the interests of owners and controllers of capital. The financialisation literature has amply examined these processes and recently international institutions like the OECD and the Bank for International Settlement have confirmed the findings of the financialisation literature with their own empirical evidence. Therefore the CMU project needs to be based on a better foundation of corporate governance that encourages long-term investments and true alignment of all stakeholders' and managers' interests.
This article argues that major post-crisis regulatory initiatives like the Dodd-Frank Act, the Vi... more This article argues that major post-crisis regulatory initiatives like the Dodd-Frank Act, the Vickers Report, the Liikanen Review and Basel III capital adequacy and liquidity rules that are shaping the banking industry globally are not likely to be successful in de-risking the banks because they do not explicitly engage with the consequences of shareholder value-driven business models that drive management behaviour in banking. Banks operate in a financialized economy where firms compete in the stock market to deliver unrealistic returns to shareholders. The business models of such financialized banks re-locate risks according to conjunctural market and regulatory arbitrage conditions to achieve the unchallenged return targets and therefore thwart the ideal outcomes aimed at by regulatory initiatives. The section ‘Introduction: Post-crisis regulatory reform initiatives to de-risk and re-capitalise banks’ of this article will describe the de-risking and re-capitalisation measures that were introduced by the post-crisis regulatory initiatives in the United States and Europe. The section ‘Financialized bank business models’ will discuss bank business models in a financialised economy and how the post-crisis regulatory initiatives have failed to address the risks in banking that are associated with maximising shareholder value. The section ‘Post-crisis examples of relocated risks in shareholder value-driven banks’ will examine two post-crisis case studies where JP Morgan Chase and the UK retail banks like Lloyds Group, in pursuit of shareholder value creation, suffered losses from activities that the new regulatory initiatives have failed to identify and regulate.
This article is about knowledge limits and the financial crisis. It begins by examining various e... more This article is about knowledge limits and the financial crisis. It begins by examining various existing accounts of crisis which disagree about the causes, but share the belief that the crisis represents a problem of socio-technic malfunction which often requires some kind of technocratic fix: the three variants on this explanation are the crisis as accident or conspiracy or calculative failure. This article proposes an alternative explanation which frames the crisis differently as an elite political debacle. Political and technocratic elites were hubristically detached from the process of financial innovation as it took the form of ‗bricolage', which put finance beyond technical control or management. The paper raises fundamental questions about the politicised role of technocrats after the 1980s and emphasises the need to bring private finance and its public regulators under democratic political control whose technical precondition is a dramatic simplification of finance.
Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.
The ballooning of central bank balance sheets after the 2007 crisis in core capitalist countries ... more The ballooning of central bank balance sheets after the 2007 crisis in core capitalist countries has attracted critical attentions of economists and financial media. The monetarist economic theory instinctively problematizes such expansion of central bank balance sheets as an inflationary phenomenon. Minskian alternative that questions the neutrality of money in neo-classical economics, however, justifies central bank activism which is necessary to bring capitalism back to stability after inevitable destabilising endogenous credit expansions. Clearly there is a policy convergence in both liberal market economies and co-ordinated market economies whereby central banks use unconventional monetary policies to generate growth and employment. This article proposes an alternative framing of central bank unconventional policies after the 2007 crisis by shifting the focus to the actual role of central banks as holders of long positions on sovereign debt and non-tradable bank assets. In the ...
This article presents a postcolonial analysis of financial citizenship (FC) programmes in Malaysi... more This article presents a postcolonial analysis of financial citizenship (FC) programmes in Malaysia. Drawing on secondary data and on interviews with elites and citizen investors, the paper explores the spatial and historically specific nature of financialisation in a postcolonial context. Specifically, the paper draws out the significance of FC as part of broader nation building objectives in Malaysia from an elite perspective, while also observing the reluctance of citizen investors who are engaging with the equity market to support the formal objectives of the policy. In doing so, it provides an example of the financialisation of everyday life in a distinctive and complex emerging economy context. Moreover, the paper explores these processes from both elite and citizen perspectives, allowing these layered relations within FC to be analysed. The article, therefore, contributes to the financialisation literature by bringing new understandings of elite–citizen relations in postcoloni...
Page 1. Reconceptualizing financial innovation: frame, conjuncture and bricolage Ewald Engelen, I... more Page 1. Reconceptualizing financial innovation: frame, conjuncture and bricolage Ewald Engelen, Ismail Erturk, Julie Froud, Adam Leaver and Karel Williams Abstract This article argues for a reconceptualization of financial ...
ABSTRACT India’s post-GFC digital financial inclusion project has been conveyed by an officially ... more ABSTRACT India’s post-GFC digital financial inclusion project has been conveyed by an officially constructed polysemic narrative that connotes three distinctive semantic fields: (a) post-colonial Indian developmental policies; (b) post-GFC financialising neoliberal financial inclusion programmes; and (c) traditional Hindu religious values of money and wealth. By assembling a semiological conceptual toolbox from the works of Barthes, Eco, and Ricouer we analyse this specific phenomenon of polysemy in India’s financial inclusion narrative. Based on our findings we develop an argument for a connotative approach to economic discourses as a possible alternative to metonymic understanding of the relationship between language and things in studying markets, economy, and neoliberal policies.
Capital Markets Union is a late but right project towards a truly single currency economic zone i... more Capital Markets Union is a late but right project towards a truly single currency economic zone in the EU. However the CMU Green Paper chooses the wrong benchmark of US capital markets and is not based on evidence. The hegemonic corporate governance ideology of shareholder value maximisation that determines the financialised firm behaviour in the US has produced, since the 1980s, malign macroeconomic outcomes resulting in lower private investments, lower wages, regular stock market crises and socially and economically costly misalignment of the interests of owners and controllers of capital. The financialisation literature has amply examined these processes and recently international institutions like the OECD and the Bank for International Settlement have confirmed the findings of the financialisation literature with their own empirical evidence. Therefore the CMU project needs to be based on a better foundation of corporate governance that encourages long-term investments and true alignment of all stakeholders' and managers' interests.
This article argues that major post-crisis regulatory initiatives like the Dodd-Frank Act, the Vi... more This article argues that major post-crisis regulatory initiatives like the Dodd-Frank Act, the Vickers Report, the Liikanen Review and Basel III capital adequacy and liquidity rules that are shaping the banking industry globally are not likely to be successful in de-risking the banks because they do not explicitly engage with the consequences of shareholder value-driven business models that drive management behaviour in banking. Banks operate in a financialized economy where firms compete in the stock market to deliver unrealistic returns to shareholders. The business models of such financialized banks re-locate risks according to conjunctural market and regulatory arbitrage conditions to achieve the unchallenged return targets and therefore thwart the ideal outcomes aimed at by regulatory initiatives. The section ‘Introduction: Post-crisis regulatory reform initiatives to de-risk and re-capitalise banks’ of this article will describe the de-risking and re-capitalisation measures that were introduced by the post-crisis regulatory initiatives in the United States and Europe. The section ‘Financialized bank business models’ will discuss bank business models in a financialised economy and how the post-crisis regulatory initiatives have failed to address the risks in banking that are associated with maximising shareholder value. The section ‘Post-crisis examples of relocated risks in shareholder value-driven banks’ will examine two post-crisis case studies where JP Morgan Chase and the UK retail banks like Lloyds Group, in pursuit of shareholder value creation, suffered losses from activities that the new regulatory initiatives have failed to identify and regulate.
This article is about knowledge limits and the financial crisis. It begins by examining various e... more This article is about knowledge limits and the financial crisis. It begins by examining various existing accounts of crisis which disagree about the causes, but share the belief that the crisis represents a problem of socio-technic malfunction which often requires some kind of technocratic fix: the three variants on this explanation are the crisis as accident or conspiracy or calculative failure. This article proposes an alternative explanation which frames the crisis differently as an elite political debacle. Political and technocratic elites were hubristically detached from the process of financial innovation as it took the form of ‗bricolage', which put finance beyond technical control or management. The paper raises fundamental questions about the politicised role of technocrats after the 1980s and emphasises the need to bring private finance and its public regulators under democratic political control whose technical precondition is a dramatic simplification of finance.
Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.
This book reflects on the innovations that central banks have introduced since the 2008 collapse ... more This book reflects on the innovations that central banks have introduced since the 2008 collapse of Lehman Brothers to improve their modes of intervention, regulation and resolution of financial markets and financial institutions. Authors from both academia and policy circles explore these innovations through four approaches: ‘Bank Capital Regulation’ examines the Basel III agreement; ‘Bank Resolution’ focuses on effective regimes for regulating and resolving ailing banks; ‘Central Banking with Collateral-Based Finance’ develops thought on the challenges that market-based finance pose for the conduct of central banking; and ‘Where Next for Central Banking’ examines the trajectory of central banking and its new, central role in sustaining capitalism.
We invite to contribute to this special session along (but by no means limited to) the following ... more We invite to contribute to this special session along (but by no means limited to) the following questions:
How do financial institutions make use of technological innovations? How do new technologies affect the regulatory tool box and the financial system? How does technological innovation change the methods for analysing the financial system?
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Papers by Ismail Erturk
How do financial institutions make use of technological innovations?
How do new technologies affect the regulatory tool box and the financial system?
How does technological innovation change the methods for analysing the financial system?
For further questions relating to the special session please write to Benjamin Wilhelm ([email protected]) or Ismail Ertürk ([email protected]). After login, abstracts of about 300–750 words can be submitted in via the EAEPE homepage (http://eaepe.org) until 31 March 2018 by selecting the title of this special session as your theme.