The Political Economy of Global Finance: States, Firms, and Markets
Exchanging money for money isn’t the same as exchanging money for goods and services. This is because money has many differentiated uses: as a fungible and tangible source of purchasing products; as a store of value; as a commodity used for trading; as a commodity used for lending; the choices made by the owners of ﬁnancial resources affect the nature and level of economic growth; and as a mechanism for leveraging itself. The globalization of trade and production involves the creation of production sites and communication systems across the world. The globalization of ﬁnance involves the increasing exchange of and movement of money across national boundaries. But these systems of ﬁnancial exchange are often coupled together by loans and the purchase of other assets, which increase the potential for volatility in markets when the changing value of one asset affects the value of connected ﬁnancial assets.