IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/asx7t.html
   My bibliography  Save this paper

Global Finance: changing practices, actors, and geographies

Author

Listed:
  • Fichtner, Jan

    (University of Amsterdam)

  • Petry, Johannes

Abstract

Global finance can be seen as a complex international network of portfolio investments, loans and financial transactions shaped by various private but also by public actors. The vast profit-seeking activities of private financial actors influence capital flows, market stability, and the allocation of financial resources have an impact on corporations, markets, and governments worldwide. In other words, global finance is not a ‘neutral’ tool for price-discovery or a ‘pass-through’ segment that merely provides capital to its most efficient use in the real economy – global finance is much more than that, it is about (re)shaping politico-economic power relations in the contemporary international political economy. Before the global financial crisis of 2007-2008, private commercial and investment banks arguably constituted the core of global finance and exerted an outsized influence. However, the crisis initiated a shift in the power distribution and actors’ constellations within global finance. This new era was arguably marked by a relative decline of big banking groups – and the concomitant rise of large asset management firms (e.g., BlackRock) and other emerging influential actors such as index providers (e.g., MSCI). In parallel, the traditional center of gravity of global finance, which revolved around the axis between New York and London, was complemented and also partly challenged by the ascent of new actors such as sovereign wealth funds and financial markets from the Global South, above all China. These new actors often follow a somewhat different logic than the frequently short-term oriented and primarily profit-driven financial market actors from the Anglo-American core, since they are often permeated by government interests and consequently aimed at incorporating long-term strategic goals.

Suggested Citation

  • Fichtner, Jan & Petry, Johannes, 2024. "Global Finance: changing practices, actors, and geographies," SocArXiv asx7t, Center for Open Science.
  • Handle: RePEc:osf:socarx:asx7t
    DOI: 10.31219/osf.io/asx7t
    as

    Download full text from publisher

    File URL: https://osf.io/download/66f125debc6f4eec4c29e1fe/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/asx7t?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
    ---><---

    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:osf:socarx:asx7t. 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: OSF (email available below). General contact details of provider: https://arabixiv.org .

    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.