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Turning financial markets inside out: Polanyi, performativity and disembeddedness / Chris Muellerleile

Environment and Planning A, Volume: 45, Issue: 7, Pages: 1625 - 1642

Swansea University Author: Muellerleile, Christopher

DOI (Published version): 10.1068/a45610

Abstract

In light of the spread of markets across the globe and deeper into daily life, thispaper argues for a more robust analysis and application of Karl Polanyi’s conception of(dis)embedded markets coupled with the performativity thesis authored mainly by MichelCallon. It suggests that while disembeddedne...

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Published in: Environment and Planning A
Published: 2013
URI: https://cronfa.swan.ac.uk/Record/cronfa26494
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spelling 2016-07-05T10:35:35Z v2 26494 2016-02-23 Turning financial markets inside out: Polanyi, performativity and disembeddedness Christopher Muellerleile Christopher Muellerleile true 0000-0001-9685-6345 false 62c8e47d6145081a464eadba0ff5c942 e2f97047080a9bf012036440b1692ab3 ME18KtjKBoBDBlpE+g26prLTdC4cXraoLxBNZuASOQI= 2016-02-23 SGE In light of the spread of markets across the globe and deeper into daily life, thispaper argues for a more robust analysis and application of Karl Polanyi’s conception of(dis)embedded markets coupled with the performativity thesis authored mainly by MichelCallon. It suggests that while disembeddedness as a concept is necessary for an analysisof contemporary financial markets that are increasingly self-referential, it is not sufficient.Despite the suggestion of a gulf between Polanyian and Callonian economics, there areimportant similarities in the two frameworks. The similarities are considered along withthe considerable difference, all in an attempt to develop a more robust methodologicalframework for analyzing financial markets. Performativity, it is argued, can help fill thegaps in Polanyi’s embeddedness framework, albeit only when that concept’s tendencyto produce aspatial and apolitical arguments are taken seriously. The paper uses anabbreviated case study of the development of US financial derivative markets in the 1970sand 1980s to argue that markets must be considered in light of both their institutional andgeographic entanglements as well as their (dis)embeddedness in systems of calculativenessand mathematical modeling. Specifically the paper analyzes the tension between thederivative origin story authored by Donald MacKenzie, which focuses on neoclassicalpricing models like the Black–Scholes–Merton option pricing formula, and my ownempirical research, which suggests the urban-economic geography of Chicago played akey role in the development of these instruments. Journal article Environment and Planning A 45 7 1625 1642 0 0 2013 2013-01-01 10.1068/a45610 College of Science Geography CSCI SGE None None 2016-07-05T10:35:35Z 2016-02-23T13:57:40Z College of Science Geography Chris Muellerleile 1 0026494-18052016135048.pdf TurningMarketsInsideOut.pdf 2016-05-18T13:50:48Z Output 261159 application/pdf AM true Updated Copyright 05/07/2016 2016-05-18T00:00:00 true
title Turning financial markets inside out: Polanyi, performativity and disembeddedness
spellingShingle Turning financial markets inside out: Polanyi, performativity and disembeddedness
Muellerleile, Christopher
title_short Turning financial markets inside out: Polanyi, performativity and disembeddedness
title_full Turning financial markets inside out: Polanyi, performativity and disembeddedness
title_fullStr Turning financial markets inside out: Polanyi, performativity and disembeddedness
title_full_unstemmed Turning financial markets inside out: Polanyi, performativity and disembeddedness
title_sort Turning financial markets inside out: Polanyi, performativity and disembeddedness
author_id_str_mv 62c8e47d6145081a464eadba0ff5c942
author_id_fullname_str_mv 62c8e47d6145081a464eadba0ff5c942_***_Muellerleile, Christopher
author Muellerleile, Christopher
author2 Chris Muellerleile
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description In light of the spread of markets across the globe and deeper into daily life, thispaper argues for a more robust analysis and application of Karl Polanyi’s conception of(dis)embedded markets coupled with the performativity thesis authored mainly by MichelCallon. It suggests that while disembeddedness as a concept is necessary for an analysisof contemporary financial markets that are increasingly self-referential, it is not sufficient.Despite the suggestion of a gulf between Polanyian and Callonian economics, there areimportant similarities in the two frameworks. The similarities are considered along withthe considerable difference, all in an attempt to develop a more robust methodologicalframework for analyzing financial markets. Performativity, it is argued, can help fill thegaps in Polanyi’s embeddedness framework, albeit only when that concept’s tendencyto produce aspatial and apolitical arguments are taken seriously. The paper uses anabbreviated case study of the development of US financial derivative markets in the 1970sand 1980s to argue that markets must be considered in light of both their institutional andgeographic entanglements as well as their (dis)embeddedness in systems of calculativenessand mathematical modeling. Specifically the paper analyzes the tension between thederivative origin story authored by Donald MacKenzie, which focuses on neoclassicalpricing models like the Black–Scholes–Merton option pricing formula, and my ownempirical research, which suggests the urban-economic geography of Chicago played akey role in the development of these instruments.
published_date 2013-01-01T12:28:53Z
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