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 Research Projects at the MPIfG

The Political Economy of Liberalized Finance in Contemporary Growth Models

Manolis Kalaitzake


 
The growth model perspective represents a major challenge to the varieties of capitalism framework within comparative political economy. Reviving a macroeconomic approach to demand, it promises to replace static-functionalism with historical practice, efficiency concerns with power relations, and the technocratic imperative of market economies with the logic of restless capitalism. This project undertakes several case studies that will examine the role of liberalized finance (or financialization) within the contemporary growth models of advanced capitalist democracies and investigate how the transnational character of the financial system mediates the interaction of export-led and consumption-led strategies. One case will analyze the implications of Brexit for the UK growth model, which is heavily dependent on the City of London as a leading global financial center and corresponding access to easy credit – a strategy now threatened by the potential severance of free trade relations between UK and EU financial markets. A second case traces the intersection of the financial industry with key elements of the post-crisis growth regime in Ireland: housing price inflation, aggressive tax competition, and high-tech exporting. The project also explores the political influence of private finance over the activity of technocratic groups responsible for the efficient functioning and stability of financial markets: namely, major central banks and the Big Four professional service firms. Project duration: March 2019 to February 2021.
 

 
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