Financialization and Government Borrowing Capacity in Emerging Markets

1. Front Matter

   Pages i-xi

   PDF

2. Introduction

   • Iain Hardie

   Pages 1-34

3. Domestic Commercial Banks

   • Iain Hardie

   Pages 35-58

4. Domestic Individual Investors

   • Iain Hardie

   Pages 59-74

5. Domestic Institutional Investors

   • Iain Hardie

   Pages 75-105

6. International Investors

   • Iain Hardie

   Pages 106-128

7. Conclusion

   • Iain Hardie

   Pages 129-152

8. Back Matter

   Pages 153-220

   PDF

Hardie investigates the link between the financialization – defined as the ability to trade risk – and the capacity of emerging market governments to borrow from private markets. He considers the government bond markets in Brazil, Lebanon and Turkey and includes interviews with 126 financial market actors.

• Brazil
• emerging markets
• financial market
• government
• Institution
• trade

'Why are some governments able to borrow more than others? Iain Hardie highlights the importance of the structure of, and agents within, government bond markets. Contrary to conventional wisdom, he shows how 'financialized' government bond markets undermine governments' borrowing capacity in important ways. This convincing argument deserves to be read not just by all scholars of finance but also policymakers seeking greater autonomy from the discipline of financial markets.' - Eric Helleiner, University of Waterloo, Canada

'The Global Financial Crisis has once again brought to the fore the question of what constraints financial markets place on governments' capacity to borrow. In this meticulously researched book, Hardie shows that, contrary to conventional wisdom, it is domestic investors who are often the dominant players in the financial markets of developing economies.' - John Ravenhill, Australian National University, Australia

'Who holds the reins on governments' borrowing capacity? Hardie demonstrates that it is the composition of domestic investors, and how engaged they are with international markets, that matters. Hardie's book comes with a warning to emerging market countries: financialization costs you autonomy. This brilliant study is a must read for all scholars of the international political economy.' - Leonard Seabrooke, Copenhagen Business School, Denmark and University of Warwick

, UK

• University of Edinburgh, UK

  Iain Hardie

IAIN HARDIE Lecturer in International Relations at the University of Edinburgh, UK. He has previously worked in investment banking in London and Hong Kong. He has published in a variety of journals, including Review of International Political Economy, Journal of Common Market Studies, New Political Economy, Economy and Society and The Sociological Review.

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