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2. No Strings Attached: Corporate Welfare, State Intervention, and the Issue of Conditionality
- Author:
- Fabio Bulfone, Timur Ergen, and Manolis Kalaitzake
- Publication Date:
- 04-2022
- Content Type:
- Working Paper
- Institution:
- Max Planck Institute for the Study of Societies
- Abstract:
- This paper contributes to Comparative Political Economy (CPE), developing an analytical concept of corporate welfare. Corporate welfare — the transfer of public funds and benefits to corporate actors with weak or no conditionality — is a prominent form of state-business relations that CPE scholarship regularly overlooks and misinterprets. Such transfers should be understood as a structural privilege of business in a globalized post-Fordist capitalism, and an increasingly common strategy through which states attempt to steward national economic dynamism within a highly constrained range of policy options. However, with- out a well-developed concept of corporate welfare – premised upon the key criterion of conditionality – studies that identify a “return” of the state in industrial planning misrepre- sent these transfers to business as a reassertion of state influence and control, rather than a reflection of state weakness and subordination. The paper provides the analytical building blocks to properly conceptualize transfers to business, works out the core challenges for em- pirical research, and provides empirical illustrations of this burgeoning phenomenon from the fields of unconventional monetary policy, privatization, and urban political economy.
- Topic:
- Industrial Policy, Political Economy, Privatization, Monetary Policy, Welfare, and Public-Private Partnership
- Political Geography:
- Global Focus
3. Monetary Policy for the Climate? A Money View Perspective on Green Central Banking
- Author:
- Jakob Vestergaard
- Publication Date:
- 07-2022
- Content Type:
- Working Paper
- Institution:
- Institute for New Economic Thinking (INET)
- Abstract:
- Central banks can potentially influence the investment decisions of private financial institutions, which in turn will create incentives towards green technology adoption and development of lower emission business models. This paper examines how monetary policies can be deployed to promote a greening of finance. To guide the efforts, the paper mobilizes the Money View literature. This enables a comparative assessment of different monetary policy options. The main finding is that a promising way forward for green monetary policy is to adopt a strategy of expanding collateral eligibility through positive screening and widening haircut spreads to change relative incentives in favor of green over brown assets.
- Topic:
- Climate Change, Economics, Monetary Policy, Banking, and Green Transition
- Political Geography:
- Global Focus
4. Western financial warfare and Russia’s de-dollarization strategy: How sanctions on Russia might reshape the global financial system
- Author:
- Maria Shagina
- Publication Date:
- 05-2022
- Content Type:
- Working Paper
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Since 2014, Russia’s de-dollarization plan has been guided by security and geopolitical considerations. By dumping the US dollar from its foreign currency reserves, Russia diverted from the traditional approach where liquidity and the credibility of the issuer determine the choice of currency. In 2022, Russia has doubled down on its efforts to de-dollarize the economy. What started as de-dollarization in 2014, transformed into full-blown rouble-ization in 2022. Following the dynamic of an emerging multipolar world order, the global financial system is also gravitating towards fragmentation and currency multipolarity. The overuse of sanctions could strengthen revisionist countries’ desire to increasingly conduct their trade in non-dollar currencies in an attempt to avoid US oversight. If current trends continue, the de-dollarization effort could gain ground and undermine the primacy of the US dollar.
- Topic:
- Monetary Policy, Sanctions, Finance, and Conflict
- Political Geography:
- Russia, Europe, and Global Focus