International financialization and the contradictions of privatized Keynesianism.

Bonizzi, Bruno (2017) International financialization and the contradictions of privatized Keynesianism. Economic and Political Studies, 5 (1). pp. 21-40. ISSN 2470-4024

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Abstract

This paper contributes to the understanding of the impact of international financialization on developing countries. It is generally understood that developing economies are part of the global financialization process, as exporters of goods to “debt-led” economies and as recipient of foreign capital inflows. This paper argues that a key process connecting these two aspects has been “privatized Keynesianism”, the policy regime that sustained financialization in advanced economies, by promoting low interest rates and asset appreciation. A consequence of this regime is to induce pressure on global financial institutions to look for returns and profits in the developing world. Such a mechanism represents a fundamental connection between developing countries and financialization at the global level, beside the spread of financial liberalisation. In the post-crisis environment, this connection remains strong and has become even more dangerous for developing countries.

Item Type: Article
Uncontrolled Keywords: financialization, privatized Keynesianism, financial crisis, developing countries
Subjects: L Social studies > L100 Economics
L Social studies > L113 Economic policy
L Social studies > L160 International economics
L Social studies > L173 Keynesianism
L Social studies > L200 Politics
Departments: Faculty of Humanities and Social Sciences > History
Depositing User: Bruno Bonizzi
Date Deposited: 12 Oct 2016 08:36
Last Modified: 23 Feb 2017 16:20
URI: http://repository.winchester.ac.uk/id/eprint/341

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