Central Banking and Financialization: A Romanian Account of how Eastern Europe became Subprime (Studies in Economic Transition)

At The Beginning Of 2009, Eastern Europe Became The Source Of Increasing Concerns, As It Was Feared That The Large Foreign Borrowing Of Its Banking System Could Trigger An Economic Cataclysm. This Book Explores How And Why Eastern Europe Became Subprime, Taking Romania As A Paradigmatic Case Study. It Explains The Region's Vulnerability Through The Hegemony Of Neoliberal Discourses And Growing Pressures Of Financialization In Money And Currency Markets. The Volume Identifies Central Banks As Key Institutions In The Reconstitution Of Formerly Planned Economies. It Advances A Conceptual Approach To The Political Economy Of Central Banking That Distinguishes Between Monetary Theory, Policy Discourse And Practices Of Monetary Management. This Re-politicization Is Fundamental For Understanding How Central Banks Are Produced Through, And Operate Within, Processes Of Neoliberal Financialization. This Book Is Indispensable Reading For All Interested In Banking, Monetary Economics, Political Economy And Development Economics. Introduction -- The Political Economy Of Central Banking : From Keynesianism To Inflation-targeting -- The Gradualist Years, 1990-1996 -- The Dawn Of A New Era, 1997-2005 -- Inflation-targeting In The Run-up To The Crisis -- Coping In The Subprime Region -- Conclusion And Implications. Daniela Gabor. Includes Bibliographical References (p. 235-250) And Index. This book explores the causes and effects of the rise of neoliberalism in Eastern Europe in the aftermath of the collapse of the Soviet Union. It provides a political economy analysis of the role of central banks, and identifies them as a key actor in the production and dissemination of the neoliberal economic policies. At the beginning of 2009, Eastern Europe became the source of increasing concerns, as it was feared that the large foreign borrowing of its banking system could trigger an economic cataclysm. This book explores how and why Eastern Europe became subprime, taking Romania as a paradigmatic case study. It explains the region's vulnerability through the hegemony of neoliberal discourses and growing pressures of financialization in money and currency markets. The volume identifies central banks as key institutions in the reconstitution of formerly planned economies. It advances a conceptual approach to the political economy of central banking that distinguishes between monetary theory, policy discourse and practices of monetary management. This re-politicization is fundamental for understanding how central banks are produced through, and operate within, processes of neoliberal financialization. This book is indispensable reading for all interested in banking, monetary economics, political economy and development economics Pt. I. Introduction -- Pt. Ii. Property Rights In Philosophy And Economics. 1. Theories Of Property In Classical Philosophy. 2. The Neoclassical Definition Of Property. 3. The Monetary Theory Of Private Property. 4. The Genesis And Changes Of Property As Portrayed By Old Institutionalists. 5. Property As An Institution: Summary And Prospect -- Pt. Iii. Property Rights In Planned Economies. 6. Legal Types Of Property And Ownership Guarantee. 7. Ownership Of The Means Of Production. 8. Employment Guarantee And Social Security. 9. Property Erosion And The Initial Situation Before Transformation -- Pt. Iv. Property Rights In Transition. 10. The Course Of Transformation. 11. The Question Of Property. 12. The Legal Solution. Hella Engerer. Includes Bibliographical References (p. 293-312) And Index. This text analyzes the emergence, evolution and theory of property rights and establishes the limits for privatization of state owned enterprises in the transitional economies of eastern Europe. It counters the assumption that reduction of the state sector helps to create the basis for a private property system, showing that privatization actually presupposes a stable framework including property order. The book makes use of an outstanding methodological approach, reaching well beyond the limits of pure economic observation. This book contributes to the understanding of the emerging economic order of central and eastern Europe "Using Germany as a focal point, this book asks whether foreign banks can solve the problems involved in creating a well-functioning market economy. Drawing on extensive interviews, as well as a range of English and German sources, it argues that there are no quickfix solutions to transition to a market economy. The German case is also accompanied by a broader review of the situation in Central and Eastern Europe. The findings contain lessons for academics, policy-makers and bankers in all countries undergoing financial development and deepening."--Jacket This title explores the causes and effects of the rise of neoliberalism in Eastern Europe in the aftermath of the collapse of the Soviet Union. It provides a political economy analysis of the role of central banks, and identifies them as a key actor in the production and dissemination of the neoliberal economic policies At first, this project was intended to be a study on transition and privatization in Romania, a country viewed with suspicion even today, due to its past, and considered a "taboo-zone", that seems to forbid even the slightest interest.