This paper examines the growing importance of digital-based financial inclusion as a form organising development interventions through networks state institutions, international organisations, philanthropic investment and fintech companies. The fintech–philanthropy–development complex generates digital ecosystems that map, expand monetise footprints. Its 'know thy (irrational) customer' vision combines behavioural economics with predictive algorithms to accelerate access to, monitor...

ABSTRACT The Wall Street Consensus is an elaborate effort to reorganize development interventions around partnerships with global finance. UN's Billions Trillions agenda, the World Bank's Maximizing Finance for Development or G20's Infrastructure as Asset Class update Washington age of portfolio glut, ‘escort’ (North) institutional investors and managers their trillions into asset classes. Making investible requires a two‐pronged strategy: enlist state risk‐proofing assets accelerate...

In its capacity as debt issuer, the state has played a growing role in financial life over last 30 years. To examine this and connect it to shadow banking, paper develops concept of 'repo trinity', which captures set policy objectives that central banks outlined after 1998 Russian crisis, first systemic crisis collateral-based finance. The repo trinity connected stability with liquid government bond markets free markets. It further reinforced dominance US market institutional template for...

Abstract This article examines a neglected structural transformation in European finance: the growing importance of government debt as collateral for Europe's repo markets, where banks borrow cash against collateral. Seduced by promises market‐driven financial integration, EU institutions and Member States encouraged private finance to generate its own architecture market early years euro, sidelining known problems about systemic fragilities. These fragilities materialized after Lehman...

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 production new asset classes and Americanization national systems with changing practices for producing liquidity; (2) global finance is a set interconnected, hierarchical balance sheets, increasingly subject to time-critical (3) credit creation in involves forms money (systemic liabilities); (4) requires...

ABSTRACT In the global race to scale up green hydrogen, a renewed appetite for visible hand of state once again promises expand developmental space low‐ and middle‐income countries. On African continent, several countries have announced industrialization ambitions that rely on mobilizing, through various ‘derisking’ schemes, private (institutional) capital looking investible opportunities. To examine transformative potential this new derisking developmentalism , article extends critical...

The emerging green capitalist state in the Global North is a derisking state. enlists private capital into achieving public policy priorities by tinkering with risk/returns on investments sovereign bonds, currency, social infrastructure (schools, roads, hospitals and houses, care homes prisons, water plants natural parks) most recently, industries. concern production of investibility forges state-capital relationship where dominates. Yet specific architecture regulatory, fiscal monetary...

Capital Markets Union is a large-scale political project to strengthen and further integrate European market-based finance. An initiative of the Commission under Jean-Claude Juncker’s leadership, seeks realize long-standing goal policy makers: financial system in which capital markets will absorb more citizens’ savings play greater role corporate Market-based banking, too, set benefit from Union, includes measures revive securitization market. Given that finance – or shadow banking...

When most political economists talk about finance they mean the conventional banking sector that is subject to reserve requirements and other regulations but enjoying safety nets offered by cen...

Traditional notions of financialisation require updating to study the reorganisation finance around digital infrastructures. We introduce concept financialisation, defined as often-coerced merging two hitherto separate aspects citizens’ lives – interactions using technologies and financial transactions into a new hybrid realm. This realm is undergirded by an infrastructure that harvests data, which companies can monetise governments use for political surveillance. In developing countries,...

The COVID-19 pandemic has reinforced the dominance of what Daniela Gabor calls Wall Street Consensus (WSC) as hegemonic approach to sustainable development. Public commitments "green recoveries" and climate resilience, growing fiscal deficits in Global South, new central bank emergency liquidity measures have created more space for WSC policies. We examine key policy tools – infrastructure an asset class, rescuer last resort, disclosure climate-related financial risks carbon pricing argue...

Debates about climate policy have neglected the question of macrofinancial pathways to decarbonisation, not all which are politically and environmentally viable. We propose a theory regimes, understood as combinations monetary, fiscal, financial institutions that shape creation allocation credit/money, hence speed nature green transition. derive typology four across two dimensions—the scale public spending degree discipline imposed on private capital. Derisking regimes low-discipline: under...

This article considers the role of central bank interventions in credit and financial markets support decarbonization. Drawing on critical macrofinance literature, we argue that banks are constrained greening flows by their continued adherence to monetary dominance – prioritizing short-term price stability structural demands global market-based finance. has led a narrow focus 'market-fixing' 'de-risking' policy interventions, implicitly outsourcing green transition private finance whilst...

For the past 20 years, Economic and Monetary Union (EMU) institutions have sought to engineer a single safe asset that would provide credible store of value for capital market participants. Before 2008, European Central Bank used shadow banking create we term money, in doing so also erased borders between Euro area government bond markets. Lacking appropriate ECB support, euros could not withstand pressures global financial crisis brought down several periphery euro bonds with them. Two new...

This paper focuses on the European Commission's proposals to include repo market – a systemic (shadow) banking in financial transactions tax (FTT). It asks why FTT governments negotiating under enhanced co-operation procedure quickly removed from scope of FTT. argues that market, rather than shadow energized by regulatory arbitrage, as it is customary portray it, grew out public–private joint venture before crisis. Thus, regulators became deeply embedded through their government bond markets...

ABSTRACT Shadow banking in developing and emerging countries (DECs) oscillates between two semantic poles. One definition is typically deployed by scholars for the narrow analysis of non‐bank financial intermediation as a viable alternative to banking. The other, more recent, circulates policy world capture new agenda engineering (securities) market‐based finance. This article argues that this second captures essential but neglected aspect shadow DECs. ‘shadow into finance’ narrative...

The green transition requires a substantive shift in financial flows that will not occur without policy interventions. We map out and critically assess the dominant, 'risk-based' approach which relies on changing relative prices of /dirty assets. Since it outsources pace nature decarbonisation to private capital, risk is poorly equipped deal with towards market-based finance, vulnerable arbitrage regulatory capture, unable uncertainty or carbon lock-in dynamics. propose an 'allocative credit...

We build upon the Minskyan concepts of 'thwarting mechanisms' and 'supercycles' to develop a framework for analysing dynamic evolutionary interactions between macrofinancial, institutional political processes. Thwarting mechanisms are structures that aim stabilise macrofinancial system. The effectiveness these changes over time as result profit-seeking innovations long-run destabilising New emerge in response, influenced by ideological conflicts. This generates secular cyclical pattern...

What shapes central banks' learning from the policy experiments of their peers? Both economic ideas and organizational interests play important roles. Thus, New Keynesian led banks to interpret Japan's experience with quantitative easing (2001–2006) through impact on risk spreads, although Japanese bank never intended such effects. In turn, scholars policy-makers alike ignored one critical lesson: successful innovations depend funding models. It is argued here that this was a crucial...

Abstract: The Wall Street Consensus is an elaborate effort to reorganize development interventions around partnerships with global finance. Billions Trillions agenda, the World Bank’s Maximising Finance for Development or G20’s Infrastructure as Asset Class all call on international institutions and governments of poor countries ‘escort capital’ – institutional investors managers their trillions in assets into investable assets. For this, ten policy commandments aim forge de-risking state...

ABSTRACT This article focuses on a key element of the IMF's agenda for change: repackaging its economics crisis around inflation targeting. It examines how this new policy regime redefines political economy advice, and contextualizes it by focusing Eastern Europe, region worst affected global financial which began in 2007. The compares conditionalities designed under old regimes argues that mainstreaming targeting reproduces function within neoliberal economy. shows how, depending role IMF...