Money and the emergence of knowledge in society

This paper deals with money’s epistemic relevance in society. Money presents theoretical difficulties for neoclassical economics, which treats it as a cost-reducing tool, leading to a socially neutral, aseptic view on money. Drawing from complexity and social theory I provide a socio-epistemic rationalization for money’s irreplaceable role. Building upon Ingham’s Money Is a Social Relation, I argue that money generates a new orderly system of complex social relations that in turn engenders knowledge as an emergent social and ontological phenomenon irreducible to the fragmented knowledge held by members of society. I show that ultimately money cannot be separated from economic knowledge and market rationality. This paper provides sociological and ontological accounts for the emergence of knowledge crucial to coordinate societies, thus extending recent explorations of the ontology of money.     

Polanyi and Post-neoliberalism in the Global South: Dilemmas of Re-embedding the Economy

Although Karl Polanyi Studied a different epoch and focused on Europe, his ideas have inspired an outpouring of studies on contemporary problems and prospects in the neoliberal era. The bulk of these studies pertain to industrial countries or global economic issues. However, the human, environmental and financial impact of market deregulation is arguably more devastating in the ‘developing’ countries than in the core. A question thus arises: do Polanyi's reflections on progressive alternatives to liberalism clarify contemporary debates on development alternatives in the Global South? I contend that democratic socialism – Polanyi's preferred remedy to the ‘demolition’ of society and nature occasioned by market civilisation – is problematical in light of what we have learned from the twentieth century, but his framework for evaluating alternatives – featuring the re-embedding of economy in society – remains as powerful as ever, I support this argument with an exploration of socialism and social democracy – as well as community – based alternatives arising from ‘reciprocity’. Each possibility raises distinctive dilemmas, as an analysis of cases reveals.     

Deterritorialisation and the Transformation of Statehood: The Paradox of Globalisation

Since the end of the Cold War, states and civil societies face a radically different security situation. In addition to state-to-state threats, transnational security issues have risen to previously unknown relevance. I will argue that – in order to create effective counter-policies against transnational threats – states must transform fundamental principles of traditional statehood according to the logic of global deterritorialisation. To develop this argument, the nature of changed security will be analysed which itself can be found in de-territorialisation: transnational actors withdraw from the territorial principles of traditional security, as best epitomised by transnational terrorism. Consequently, ‘national security’, developed according to the territorial ‘inside’-‘outside’-logic of the state, no longer counters those actors. States must elaborate deterritorial strategies. This development causes a transformation of the state since territoriality is the basic principle of modern statehood. Thus, the reassertion of the state in global security unveils a paradox: to react to deterritorialised security and to reassure their power in global politics, states must overcome their traditional principles of territorial politics and further the development of deterritorialisation.     

Theorizing the Financial Statecraft of Emerging Powers

‘Financial statecraft’, or the intentional use of credit, investment and currency levers by the incumbent governments of creditor – and sometimes debtor – states for both international economic and political advantage, has a long history, ranging from money doctors to currency wars. A neorealist, zero-sum framing of international monetary relations is not inevitable, yet casts a persistent shadow especially during periods of prospective interstate power transitions when previously peripheral countries find themselves with unexpected new capabilities. This article seeks to understand and theorise the financial statecraft of emerging economies, moving beyond the traditional understanding that closely identifies the concept with financial sanctions imposed by a strong state on a weaker state. We propose that the aims of financial statecraft may be either ‘defensive' or ‘offensive’. Financial statecraft may be targeted either ‘bilaterally' or ‘systemically’. Finally such statecraft may employ instruments that are either ‘financial' or ‘monetary’. As emerging market economies have moved up in the ranks in the interstate distribution of capabilities, they have also expanded their financial statecraft strategies from narrowly defensive and bilateral to those involving offensive tactics and targeted at the global and systemic level. Historical and contemporary examples illustrate the analysis.     

Swedish Geopolitics: From Rudolf Kjellén to a Swedish ‘Dual State’

Early in the twentieth century, Swedish geopolitical scholar Rudolf Kjellén wrote of the nineteenth century nation-state as a state of ‘land and people’, but he also suggested that in the twentieth century various empires would eventually force Central Europe to unify into a bloc of states under the protection of a powerful Germany. This concept of ‘state-bloc’ resembles Carl Schmitt’s idea of Grossraum and is also very similar to what later became NATO, but now with the United States, not Germany, as its central protecting power. Within the individual state, this duality of nation-state and state-bloc was fused with what Hans Morgenthau called a ‘dual state’ with a regular state hierarchy of the nation-state versus a parallel security hierarchy, now linked to the central power. After the Second World War, Sweden, despite its ‘policy of neutrality’, was placed under the US nuclear umbrella, creating a duality that typified Morgenthau’s idea of the ‘dual state’. The regular ‘democratic hierarchy’ was confronted by the US-leaning ‘security hierarchy’, with the latter intervening in the event of emergency. In the 1980s, the strength and unpredictability of the Swedish Social Democratic government became worrisome to the US security network. In a crisis situation, the ‘dual state’ – or what we might call a ‘double sovereignty’ of the ‘democratic state’ and the ‘security state’ – might prove unacceptable. In the final analysis, the Schmittian ‘sovereign’ is undivided.     

China,India and the US Rebalance to the Asia Pacific: The Geopolitics of Rising Identities

The US rebalance to the Asia Pacific is consistently interpreted as a response to China’s material rise. While not entirely incorrect, this assumption – derived from an overriding faith in the explanatory significance of relative state capabilities – fails to explain why rapidly rising others, most notably India, remain absent from regional US security discourse, and why a heavy US presence in Asia predates China’s ascent of the 1970s onwards. To address these problems and offer an improved explanation of what the rebalance is, how and why it has come about, and what it is designed to achieve within the context of China’s rise, this analysis draws from critical geopolitics and postcolonial theory. It argues that the rebalance is best conceived as the (re)articulation of historical discourses which construct certain foreign Others like China as challenges to the ontological American self, making the rebalance an attempt to pacify a particular rising identity as much as a rising state actor. The analysis is motivated in part by the question of how the rebalance is enabled in its current form. From here, the article addresses an increasing yet regressive tendency of International Relations theory to deny studies of the ‘how possible’ explanatory value, encouraging their marginalisation in favour of examinations into ‘why’ political decisions are made.     

The dichotomy once again

Patinkin's contribution to monetary theory is discussed with particular attention given to his ‘dichotomy argument’. It is shown that he is perfectly correct, but there is a confusion in the literature between the ‘neutrality proposition’ and the independence of equilibrium of the quantity of money. I then turn to homogeneity and its importance, and stress that the homogeneity applies to current as well as expected prices. I am rather unkind to mathematizing the double coincidence of wants argument, since it seems very obvious and the mathematics is exceptionally ugly. The paper concludes with remarks on monetary policy and the connection between the theory of money and that of information.     

Nation Branding for Survival in North Korea: The Arirang Festival and Nuclear Weapons Tests

The article problematises a popular view in nation branding literature that equates nation branding with states’ attendant advertising campaigns. Instead, this article adopts a broader perspective that nation branding can also operate as a policy aimed at enhancing the sense of ontological security among states and as a practice to strengthen the position of the ruling regime by targeting particular audiences within a broader ‘strategic narrative’. From this perspective, this article aims to shed new light on non-liberal capitalist countries’ – specifically North Korea’s – attempts at nation branding policies in terms of various nation branding strategies. In so doing, Clifford Geertz’s anthropological concept of ‘theatre state’ is introduced as an important metaphor to broaden the existing understanding of nation branding by highlighting the unique characteristics of North Korea’s policies of nation branding and nation building. It is argued that great national spectacles such as the Arirang Festival and military demonstrations provide North Korea with a useful platform for participating in the identity competition among other nation states, as well as in the fierce recognition game against the rest of the Korean national community. Obviously, these strategic performances have contributed to communicating with the outside world, deliberately seeking more respect from others, but have simultaneously operated as nation building processes. Therefore, this work concludes that such staged events are sophisticatedly designed to enhance North Korea’s complex interest of nation branding, and, more importantly, argues that techniques and practices of nation branding are neither historically new nor confined to Western liberal capitalist regimes.     

Depoliticisation,the Management of Money and the Renewal of Social Democracy: New Labour's Keynesianism and the Political Economy of ‘Discretionary Constraint’

Pointing to its radical underpinnings in so-called ‘Open Marxism’ and its theory of the state (one that subsumes the state in the capital relation), this article critically scrutinises Peter Burnham's thesis of ‘depoliticisation’ as a dominant accumulation strategy and regime. The article identifies ambiguities around Burnham's depiction of New Labour in power as committed to depoliticisation. It addresses these by drawing a distinction between regime of accumulation and mode of regulation, characterising New Labour's political economy in terms of the latter as a form of depoliticised Keynesianism framed by ‘discretionary constraint’. Contra-Burnham, the article points to the continued efficacy of Keynesian and social democratic political agency in the context of a dialectic of depoliticisation and repoliticisation focused on the role and power of the state. This dialectic is symptomatic of the contested regulation of capitalism around the defence of the value of money, on the one hand, and its broader management and redistribution, on the other.     

Governing stigmatised space: the case of the ‘slums’ of Berlin-Neukölln

Spatial stigmatisation – naming spaces with high concentration of poverty as a slum or ghetto – has been well covered in the critical urban geography and sociological debates. Yet, these discussions have neglected to theorise the intersection between the production of stigmatised space and the governance of its inhabitants within the context of one of Germany’s most stigmatised boroughs. By situating Berlin-Neukölln within historical processes of capital accumulation, I show how the discursive, institutional and material practices of neoliberal social policies have played a central, albeit contradictory, role in (re-)producing stigmatise spaces and subjects along racialised, gendered and class lines. This is particularly evident with regard to neoliberal governance strategies that employ and apply the power of public money to repress and integrate impoverished workers into contemporary capitalist society, or what I refer to as the ‘monetisation of socio-spatial reproduction’.     

‘Sovereignty Entrepreneurs’ and the Production of State Power in Two Central African Borderlands

This article advances a subaltern geopolitics of sovereignty production at the borders of the DR Congo – the supposedly most fragile – and South Sudan – the youngest state in Africa. Moving beyond critiques of representing postcolonial statehood and sovereignty in terms of ‘lack’ and ‘failure’, we localise and ground analysis by drawing on Butler’s figure of the ‘petty sovereign’‘ to analyse the agency of border officials at the DR Congo/Rwanda and the South Sudan/Uganda border who we refer to as ‘sovereignty entrepreneurs’: officials who, tasked with managing and controlling the border, in constant face-to-face negotiations and closely linked to resource competition prescribe, set and decide on the terms and conditions of border crossing. It is argued that in the context of the DR Congo and South Sudan, where the states’ claims to territorial sovereignty face similar internal and external challenges, the border work of sovereignty entrepreneurs, characterised by the ability to tax, threaten and discipline with impunity, represents a form of sovereign power that renders the state’s capacity to act excessively visible at its borders.     

Economics of Social Capital*

The literature on the idea of ‘social capital’ is now enormous. Offering an alternative to impersonal markets and coercive states, the communitarian institutions built around social capital have looked attractive to scholars in the humanities and social sciences. The literature in consequence has a warm glow to it. In this article, I first study the various contexts in which the promises people make to one another are credible and then suggest that the accumulation of social capital is a possible route to creating such a context. I offer a tight definition of social capital – namely, interpersonal networks – so as not to prejudge its ability to enhance human well-being. The links between the microfoundations of social capital and the macroeconomic performance of economies are then studied. I also show that economic theory not only identifies circumstances in which communitarian institutions can function well, but that it also uncovers a dark side, namely, their capicity to permit one group to exploit another within long-term relationships.     

Defence and Promotion of Desired State Identity in Russia’s Strategic Narrative

This article examines how the Russian state promotes and protects its preferred self-identity, using the conceptual framework of ‘strategic narrative’. Nation branding practices, including state-funded ‘mega-projects’ like the Sochi Olympics, have contributed to the narrative by characterising Russia as a welcoming, attractive destination. However, a more salient feature of Russia’s strategic narrative is intense ‘anti-Western’ and ‘anti-American’ political and media discourse, formulated to defend against rival, threatening narratives projected from other countries. Through analysis of official statements and state television content, this article demonstrates how determination to protect ‘great power’ and ‘European’ identities underlay Russia’s strategic narrative in 2014. It considers responses which the narrative has prompted, arguing that desired results in domestic reception have been achieved at the expense of unsatisfactory results internationally. Heavy-handed attacks on the identities of other states boost collective self-esteem among Russian citizens, but they fail to produce – and arguably obstruct – desired responses among foreign audiences.     

Carl Menger's theory of the evolution of money: some problems

The Austrian economist Carl Menger suggested that money, law and language may all evolve without state intervention. A preliminary task of this article is to clarify what is meant by ‘evolve’ in this context. It is further argued that there is a gap in the Mengerian argument: a neglect of potential quality variation in the emerging monetary unit. Attention to this factor suggests a role for intervention in the monetary system, by the state or another overarching authority such as a central bank, to police the currency against debasement, and to legitimate its value. Furthermore, the argument suggests why law is not an entirely spontaneous institution and may require state sanction that is not generally necessary in the case of language.     

Scale effects found!

A key feature of early endogenous growth models is their prediction of scale effects – the larger the economy, as measured by population, the number of firms or employment, the faster the economy should grow. However, empirical work has failed to support the existence of scale effects. As a result, much human capital has been expended in order to ‘fix’ this problem by eliminating scale effects in endogenous growth models. We contend that econometric techniques used in the empirical search for scale effects are inconsistent with growth theory. Using data from US states and an econometric technique that better matches growth theory by allowing each economy to have its own steady state, we provide empirical support for the existence of scale effects. Results call into question the need to reformulate the first models of endogenous growth.     

From Sovereignty to Imperium: Borders,Frontiers and the Specter of Neo-Imperialism

Borders are changing in myriad and multifaceted ways. After 9/11, states redoubled efforts at shoring up their perimeters and building walls. But borders are not merely increasingly securitized, they are also becoming thicker and bi-national. This new ‘zonal’ border emerging worldwide radically shifts the debate about borders and sovereignty. If sovereignty is indivisible, unitary and final, how can it be shared between states at their mutual perimeters? Is this really evidence of sovereignty waning? In this article, I suggest we are stuck at this conceptual impasse because of two conflations. The first one involves two aspects of sovereignty: authority and control. Looking at borders as thin jurisdictional lines, we observe only their legal authority (de jure); instead, by examining changing modes of control, we can see how new securitized borders actually reinforce state strength. The second conflation revolves around the conceptual linking of borders, states and sovereignty. This article argues that as borders thicken, they start to resemble frontiers, and sovereignty starts to resemble imperium – a Roman designation for political authority that is territorially unbounded. This disrupts the border/state dyad and situates borders (lines) and frontiers (zones) on a continuum. In doing so, it reveals how sovereignty is not waning, but changing shape – a worrisome geopolitical conclusion given the possibilities of neo-Imperialism due to power asymmetries between neighbouring states.     

The International Politics of Reactive Currency Statecraft: Japan’s Reaction to the Rise of the Chinese Renminbi

This study analyses how a state’s reactive currency statecraft – its strategic reaction to an international currency issued by a foreign state – is shaped, by devoting special attention to its broad foreign policy stance towards the state issuing that international currency, with a main empirical focus on the Japanese case with regard to the Chinese renminbi. This research argues that a state uses its policy related to a foreign international currency as a diplomatic means of managing its political relationship with the state issuing that currency, while also showing that in general most market actors are not greatly interested in their governments’ policies regarding foreign international currencies, especially those that are newly internationalising ones. This study finds as well that the conventional notion of ‘competition’ between international currencies does not necessarily affect a state’s reactive currency statecraft, even if its own currency is a major international one. All of this suggests that the inter-state politics between the state issuing an international currency and foreign states does have a crucial impact on the currency’s international use, especially during its early stages of internationalisation. It also implies that a state’s reactive currency statecraft can be fluid, depending upon the directions of its foreign policy.     

Marx on Ricardo: an explanation of some important misunderstandings

Ricardo's theory of value and distribution is reconstructed by proceeding along the lines of Marx's critique of Ricardo. It is thus an anti-critique of Marx's reading of Ricardo. The chapter ‘On Value’ in Ricardo's Principles is shown to be a consistent and rigorous treatment of the determinants of prices of production. According to Ricardo labor-values merely serve to approximate more elaborate standards of value. Marx's criticism is shown to rest crucially on his own misinterpretation of Ricardo's definitions and presupposes his own – faulty – theory of surplus value. Therefore Ricardo's theory can – contrary to Marx's theory of surplus value – still be regarded as a fruitful complement to Sraffa's model.     

A Documentary Theory of States and Their Existence as Quasi-Abstract Entities

This article is concerned with the existence of states as a matter of fact, and it approaches that subject within the context of the ontology of social reality as a whole. It argues, first, that states do not have a place in the traditional Platonist duality of the concrete and the abstract. Second, that states belong to a third category – the quasi-abstract – that has received philosophical attention with a recently emerging theory of documentality. Documentality, derived from Austin’s theory of performative utterances, claims that documents acts can bring quasi-abstract objects, such as states into being. Third and finally, it argues that the existence of quasi-abstract states should not be rejected on the basis of the Principle of Parsimony, because geopolitical theories that recognise the existence of quasi-abstract states will have greater explanatory power than theories that deny their existence.