Abstract
This dissertation provides a unified ‘monetary’ analysis of the open economy that clarifies the macro-financial implications of endogenous money in the international context. It does so by developing a series of conceptual contributions culminating in an analytical framework that reconciles alternative endogenous money approaches, addressing longstanding controversies in open-economy monetary analysis. By uncovering ‘internal structures’ that shape agents’ expectations under fundamental uncertainty, the study is able to shed light on the evolving impact of shifting global financial conditions and derive implications for financial instability.The framework is articulated by drawing on money endogeneity across self-contained chapters that present original inquiries into logically sequential research questions. These include spelling out the role of international capital flows, as well as elucidating the formation process of key macro-prices such as interest and exchange rates in the open economy, under variable ‘temporal’ and ‘spatial’ conditions. More broadly, the framework extends to clarifying how liquidity pressures originating in global financial markets may contribute to domestic financial instability and unevenly shape international economic development.
Evidence is provided in support of this conceptual framework at multiple levels by following a critical realist research strategy through a mix of qualitative and quantitative methods. By critically interrogating relevant research, the dissertation engages with factual events as presented through existing literature accounts. Descriptive statistical analysis is used to identify event regularities, hence informing the derivation of the analytical framework while simultaneously corroborating it in a cumulative way. Formal methods are used to synthesise the theoretical propositions underpinning the framework and to explore their interactions, thereby providing further corroborative evidence within a Stock-Flow Consistent model.
Overall, the study draws attention to the disruptive dynamics that ensue from the hierarchical configuration of international monetary and financial structures, calling for institutional reforms that address moneyness loopholes and facilitate generalised access to liquidity.
| Date of Award | 2024 |
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| Original language | English |
| Awarding Institution |
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