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The Road to Financialization in Central and Eastern Europe: The Early Policies and Politics of Stabilizing Transition

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  • Daniela Veronica Gabor

Abstract

Narratives of macroeconomic stabilization played an important part in the financialization of the formerly planned economies. The excess demand narrative, one of the least contested ‘problems’ of post-socialist transformation, shaped central banks' liquidity policies and thus translated the priorities of financialized capitalism into policy goals and practices. The paper challenges the boundaries of the debates on post-socialist economic developments, contextualizes the representation of the stabilization ‘problem’ in those debates and reinterprets them from the standpoint of financialization. If the excess demand narrative is treated as a contested account of the stabilization ‘imperative’, its role as catalyst for the financialization of the banking sector and the shift to impatient finance becomes apparent. An alternative approach to stabilization is further outlined, drawing on institutionalist conceptualizations of the role of money in capitalist production.

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  • Daniela Veronica Gabor, 2012. "The Road to Financialization in Central and Eastern Europe: The Early Policies and Politics of Stabilizing Transition," Review of Political Economy, Taylor & Francis Journals, vol. 24(2), pages 227-249, April.
    • Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:227-249
    DOI: 10.1080/09538259.2012.664333
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    References listed on IDEAS

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    Cited by:

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    2. Karwowski, Ewa, 2017. "Corporate financialisation in South Africa: From investment strike to housing bubble," Economics Discussion Papers 2017-7, School of Economics, Kingston University London.
    3. Zhenfa Li & Fulong Wu & Fangzhu Zhang, 2023. "Adaptable state-controlled market actors: Underwriters and investors in the market of local government bonds in China," Environment and Planning A, , vol. 55(8), pages 2088-2107, November.
    4. Stuart Shields, 2020. "The EBRD, fail forward neoliberalism and the construction of the European periphery," The Economic and Labour Relations Review, , vol. 31(2), pages 230-248, June.
    5. Amat Adarov & Mario Holzner & Olga Pindyuk & Goran Vukšić, 2018. "Monthly Report No. 12/2018," wiiw Monthly Reports 2018-12, The Vienna Institute for International Economic Studies, wiiw.
    6. Kazandziska, Milka, 2022. "Financialization in emerging Europe," IPE Working Papers 183/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).

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