Distinguishing Financialization from Neoliberalism

This article contends that neoliberalism and financialization, although sharing much in common, are not synonymous developments. Not only do strongly financialized nations display structural, economic differences, they are also directed by alternative economic epistemologies, cultures and practices. The argument is made by examining the financialization of the UK economy since the mid-1970s. This shift was not simply part of a broad transition away from Keynesianism and towards free market fundamentalism. It was also one very much guided by the particular economic paradigm, discursive practices and devices of the City of London as financial elites took up influential positions in the Thatcher government. The discussion and case example highlight five epistemological elements specific to finance: the creation of money in financial markets, the transactional focus of finance, the centrality of financial markets to economic management, the orthodoxy of shareholder value, and the intense microeconomic approach to financial calculation. Such elements, in conjuction with neoliberalism’s reliance upon finance-blind neoclassical economics, lies at the cultural and epistemological distinction between fiancialization and neoliberalism. Identifying such distinctions opens up new possibilities for understanding financialization, elites, and the neoliberal condition that brought about the financial crash of 2007-08, as well as the political and economic crises that have followed

Employers’ recruitment of disadvantaged groups: exploring the effect of active labour market programme agencies as labour market intermediaries

This article draws on an original comparative survey of employers in the UK and Denmark to analyse the role of active labour market programmes (ALMPs) in employers' recruitment of disadvantaged groups. Using the framework of Bonet et al. to conceptualise agencies delivering ALMPs as labour market intermediaries (LMIs), the effect of ALMPs on employers' recruitment was tested against organisational factors involving firm size and selection criteria. Although ALMPs marginally increased employers' probability of recruiting the long-term unemployed in both countries and lone parents in Denmark, their effect was negligible compared with firm size and employers' selection criteria. While ALMP agencies have the potential to increase employers' recruitment of disadvantaged groups, this is constrained when they act as basic ‘information provider’ LMIs. ALMP agencies' inability to act effectively as ‘matchmaker’ LMIs leads to a failure to overcome rigid intra-organisational barriers to such recruitment

Understanding Financialization: Standing on the Shoulders of Minsky

Since the death of Hyman Minsky in 1996, much has been written about financialization. This paper explores the issues that Minsky examined in the last decade of his life and considers their relationship to that financialization literature. Part I addresses Minsky's penetrating observations regarding what he called money manager capitalism. Part II outlines the powerful analytical framework that Minsky used to organize his thinking and that we can use to extend his work. Part III shows how Minsky's observations and framework represent a major contribution to the study of financialization. Part IV highlights two keys to Minsky's success: his treatment of economics as a grand adventure and his willingness to step beyond the world of theory. Part V concludes by providing a short recap, acknowledging formidable challenges facing scholars with a Minsky perspective, and calling attention to the glimmer of hope that offers a way forward