The Financialized Economy: Theoretical Views and Empirical Cases

Cover
Half Title
Series Information
Title Page
Copyright Page
Table of contents
Preface
Acknowledgements
Introduction
	Vignette: the civilizing effects of commerce argument
	Commerce in the new millennium: business deals made in microseconds
	The purpose of the thesis
	Outline of the volume
	Summary and conclusion
	Notes
1 The financial economy: A review of the literature
	Introduction: the business franchise to issue credit
	Finance industry expansion
	The concept of financialization
	Firm-level financialization
		The legal theory view
	Entangled financial conditions: foreign direct investment (FDI) and corporate offshoring
	Additional financialization activities and their relations
		Financial innovations: the case of asset securitization
		Securitization and the escape from liability
		Securities regulation to uphold the liability law enforcement mechanism
	Shadow banking and its role in the credit formation process
	Systemic risk: the ghost in the finance machinery
	Summary and conclusion
	Notes
2 The institutional framework: The capital formation process in finance-led economies
	Introduction
	Housing policy, home mortgage lending, and the role of the construction industry
	Capital formation, safe assets, and credit supply
		Securitization and the credit formation process
	State-backed safe assets and the question of financial stability
		The state debt mechanism
	Credit supply shocks and the household debt channel
		The global savings glut
		The role of behavioural bias
	Regulatory concerns: the question of how to balance credit supply and financial stability
		Regulatory blind spots
	Summary and conclusion
	Notes
3 Thickly capitalized ventures: Housing production, illiquid assets, and social welfare
	Introduction
	Attracting finance capital to the housing sector
	Illiquid assets, asset prices, and the expansion of credit
	Local government and the creation of housing project
		The financing of urban renewal projects
		Housing projects on the basis of tax increment financing
	The creation of affordable housing in finance-led markets
	Everyday housing concerns and practices: the case of middle-class and destitute communities
	Thickly financed industries and the quest for affordable housing: is the subsidizing of housing production supportive ...
	Summary and conclusion
	Notes
4 Thinly capitalized ventures: Financing science-based innovation in entrepreneurial firms
	Introduction
	The endemic shortage of venture capital and the taming of uncertainty
	The entrepreneurship ideology and venture capital supply
	The significance of venture capital investment
	Junior stock market financing
	The state as the venture capital market maker: some concerns
	Investment opportunities that attract residual capital
	Rentier interests exclude uncertain investments
	Summary and conclusion
	Note
5 The institutional logic of the finance-led economy
	Introduction
	Rentier interests and the entrepreneurial function
	The difficulty to regulate the finance industry towards welfare ends: the case of social impact bonds (SIBs)
		Empirical studies of SIB financing
		Policy implications
	Household level implications: questioning credit as social provision on the basis of diminishing returns on finance ...
	Alternative routes: a new view of finance industry regulation
		Theoretical view of the central bank independence legislation
	Empirical evidence challenging the central bank independence model
		The consequences of low interest rate policy
	Risk calculation as the basis of the financial economy: consequences and policy implications
	Summary and conclusion
	Postscript
	Notes
Bibliography
Index