Money makes the world go round

Question 1

Functions of money?

Answer 1

Exchange through cash/credit
Money in the capitalist system
Money as the ‘incarnation of social power’ (Harvey 1982: 245)
Money forges connections between people and places

Question 2

Rise of GFS?

Answer 2

Geographical location no longer matters
Financial market regulators no longer have full sway over their regulatory territory
For financial firms, choice of geographical location widened, provided investment in information and computer systems is made

Question 3

Drivers of the shift?

Answer 3

De-regulation of financial markets. Shift towards free market
Rise of TNCs operations in financial services
Innovations in tradeable financial products
Time-space compression
Computers: money made electronic
Satellites: 24 hour trading

Question 4

Effects of the shifts?

Answer 4

Economic contagion effect: Global credit crunch 2007/8
Eurozone crisis 2009+: Bailouts for Greece, Ireland, Portugal

Question 5

Debunking global monies: geography matters

Answer 5

Geographical conc of financial services management: N America, Europe, growing in Asia
Role of national currencies e.g. US dollar
Alternative frameworks and beliefs e.g. Islamic banking
Only a few command points in global system e.g. London, Tokyo
Public e.g. spread of welfare and infrastructure spend within nations
Regulatory e.g. tax, interest, incentives, levers