Financial Globalization, Crisis, and the Reorganization of Global Capital

Philip G. Cerny

in Rethinking World Politics

Published in print February 2010 | ISBN: 9780199733699
Published online May 2010 | e-ISBN: 9780199776740 | DOI:
Financial Globalization, Crisis, and the Reorganization of Global Capital

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This chapter focuses on what would seem at first glance to be the most problematic issue area today in the context of the current financial crisis and recession, what has been called “financialization.” The increasingly tight coupling of global financial markets, new forms of financial innovation, the politics of economic growth, and the process of economic development have led to a politics of regulatory change over the past three decades that was long believed to be stable but has proven deeply fragile. The process of so-called financial deregulation was not only promoted by self-interested capitalists, although they were key players, but also by actors in the real economy seeking new forms of investment, regulators and bureaucrats at home and in transgovernmental networks, a wide range of interest and even value groups, political parties and leaders on both right and left, neoliberal intellectuals of various stripes — not just economists — and, of course, voters and consumers. For example, people wanting to own their own homes but lacking the resources to do so were an essential part of the complex set of causes of the so-called subprime mortgage crisis in the United States, which started the process of unraveling.

Keywords: financial globalization; finance; crisis; financialization; global financial markets

Chapter.  11254 words. 

Subjects: International Relations

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