Financialisation in the Post-Yugoslav Region: Monetary Policy, Credit Money and Dollarization.

Abstract

This paper considers long term processes of financialisation in the former and post-Yugoslavia in relation to the global emergence of financialisation. Regional monetary policy has since the 1980s defended the value of credit money in order to facilitate international capital flows. It is argued that the monetary system of fixed exchange rates, inflation targeting and capital account liberalisation has engineered the subordinate financialisation and dollarization of the region. The present debt crisis is seen as crisis of financialised capitalism and a crisis of European integration before formal European integration, mirroring that of the Eurozone periphery