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Rethinking liquidity: A critical macro-finance view

Published online by Cambridge University Press:  09 November 2023

Fabian Pape
Fabian Pape*
Affiliation:
University of Warwick, UK
*
Corresponding author: Fabian Pape, Department ofPolitics and International Studies, Social Sciences Building, University ofWarwick, Coventry, CV4 7AL, UK. Email:f.pape@warwick.ac.uk.
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This forum contribution critically rethinks the macro-financial approach to liquidity by focusing more explicitly on its public-private hybrid dimension. To do so, it introduces the notion of a ‘liquidity regime’: a heuristic device aimed at tracking the ensemble of social relations and institutions that govern the coherence of the payments system at any given time. A key insight that emerges from this approach is that the ability to make markets and access liquidity is never neutral or apolitical. What requires closer attention, therefore, is precisely how the interaction between public authorities and private market participants affords some actors greater leverage in shaping the financial system.

Type
Forum: Critical macro-finance
Information
Finance and Society , Volume 6 , Issue 1 , 2020 , pp. 67 - 75
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-No Derivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits noncommercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
© 2020 The Author(s)

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