IDEAS home Printed from https://ideas.repec.org/a/taf/rripxx/v28y2021i4p775-793.html
   My bibliography  Save this article

Taking Europe seriously: European financialization and US monetary power

Author

Listed:
  • Iain Hardie
  • Helen Thompson

Abstract

This article considers the link between the financialization of European banks and US monetary power. We focus first on the Global Financial Crisis of 2008-09 (GFC), arguing that crisis origins should largely be located in European banks’ financialization and their becoming a banker to both the US and the global US dollar-based offshore banking system. The interdependence between this system and the US economy constrained US monetary policy before the crisis, and forced the Federal Reserve to assume the Lender of Last Resort (LOLR) function for the entire offshore system, despite much of this system involving lending between non-US counterparties. European financialization caused reduced US monetary autonomy and therefore power. This article argues for greater attention in IPE to European financial developments in the GFC’s implications. The importance of European banking has been maintained post-crisis and Europe has moved to a substantial surplus position, suggesting Europe’s continued importance.

Suggested Citation

  • Iain Hardie & Helen Thompson, 2021. "Taking Europe seriously: European financialization and US monetary power," Review of International Political Economy, Taylor & Francis Journals, vol. 28(4), pages 775-793, July.
  • Handle: RePEc:taf:rripxx:v:28:y:2021:i:4:p:775-793
    DOI: 10.1080/09692290.2020.1769703
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09692290.2020.1769703
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09692290.2020.1769703?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mouré, Christopher, 2024. "Consolidation and Crisis in the US Banking Sector 1980-2022," Working Papers on Capital as Power 2024/03, Capital As Power - Toward a New Cosmology of Capitalism.
    2. Photis Lysandrou, 2022. "The European banks’ role in the financial crisis of 2007-8: a critical assessment," New Political Economy, Taylor & Francis Journals, vol. 27(5), pages 879-894, September.
    3. Mouré, Christopher, 2024. "Who Controls the Public Debt? A Critical Review of Sandy Brian Hager’s Public Debt, Inequality, and Power," Working Papers on Capital as Power 2024/02, Capital As Power - Toward a New Cosmology of Capitalism.
    4. Pape, Fabian & Petry, Johannes, 2023. "East Asia and the politics of global finance: a developmental challenge to the neoliberal consensus?," LSE Research Online Documents on Economics 118296, London School of Economics and Political Science, LSE Library.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rripxx:v:28:y:2021:i:4:p:775-793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rrip20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.