2010/12/01 by Daniela Gabor
Economics, Econometrics and Finance · #Banking stability, regulation, efficiency #Global Financial Crisis and Policies #Housing, Finance, and Neoliberalism
paper · doi:10.1179/102452910x12837703615373
openalex publication_date 2010/12/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30
This paper investigates how financialization pressures in Eastern Europe shaped vulnerabilities to the 2007 global deleveraging and to what extent policy responses to crisis have sought to reinforce or delink from financialization. It explores the technical devices underpinning financialization, linked to the dominance of carry-trade strategies in foreign-owned banks and nonresident investors, validated by a set of central bank practices that changed the relationship between wholesale money markets and currency markets. Three distinct periods in the timeline of crisis show that central bank interventions were crucial in resuscitating financialization and that attempts to re-embed finance cannot be successful if public debt dynamics are neglected.