Book contents
- Critical Junctures in Mobile Capital
- Critical Junctures in Mobile Capital
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- Introduction
- 1 Sovereign Nations and the Governance of International Finance
- 2 Coping with the Dangerous Component of Capital Flows and Asia’s Ineffective Cooperation
- 3 How Mobile Capital Plays Off Democracy
- 4 Mobile Capital as the Ultimate Form of War Finance
- 5 Capital Moves Financially
- 6 International Money after the Crisis
- 7 Beware of Financialization!
- 8 Lagoon Immobility
- 9 Impacts of Mobile Capital’s ‘Convenient Reverse Logic’
- 10 Imagine
- 11 Money, State and Capital
- 12 Superdiversity, Exploitation and Migrant Workers
- 13 The Bitcoin or the Reality of a Waking Dream
- 14 Capital Mobility and the Fragmentation of Monetary Sovereignty
- 15 Complementary Currencies as Weapons in Times of Financial Instability
- Index
- References
7 - Beware of Financialization!
Emerging Markets and Mobile Capital
Published online by Cambridge University Press: 26 February 2018
Book contents
- Critical Junctures in Mobile Capital
- Critical Junctures in Mobile Capital
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Contributors
- Acknowledgements
- Introduction
- 1 Sovereign Nations and the Governance of International Finance
- 2 Coping with the Dangerous Component of Capital Flows and Asia’s Ineffective Cooperation
- 3 How Mobile Capital Plays Off Democracy
- 4 Mobile Capital as the Ultimate Form of War Finance
- 5 Capital Moves Financially
- 6 International Money after the Crisis
- 7 Beware of Financialization!
- 8 Lagoon Immobility
- 9 Impacts of Mobile Capital’s ‘Convenient Reverse Logic’
- 10 Imagine
- 11 Money, State and Capital
- 12 Superdiversity, Exploitation and Migrant Workers
- 13 The Bitcoin or the Reality of a Waking Dream
- 14 Capital Mobility and the Fragmentation of Monetary Sovereignty
- 15 Complementary Currencies as Weapons in Times of Financial Instability
- Index
- References
Summary
The increasing importance of mobile capital is part of a broader process of financialization. The globalization of financial markets and corresponding rise of mobile capital not only affect established economies but also emerging markets. While the degree of financialization in emerging markets is usually much lower than in advanced economies, a strong role of mobile capital carries more dangers in the former. Emerging markets try to organize catch-up processes of industrialization. These require massive industrial investments based on long-term economic stability. Without stability, companies will be reluctant to undertake major investments. Mobile capital can inhibit these investments in multiple ways, be it through banking crises, currency volatility or through a company focus on short term financial results. Many emerging markets try to protect their sovereignty against mobile capital through a variety of means, including a small role for global financial markets in corporate governance and investment finance, capital controls and through the accumulation of huge foreign currency reserves. However, we find much diversity between emerging markets regarding these measures, with particularly strong differences between the protective large emerging markets of China and India on the one side, and the more liberal emerging markets of Central Eastern Europe on the other.
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- Information
- Critical Junctures in Mobile Capital , pp. 156 - 181Publisher: Cambridge University PressPrint publication year: 2018
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