FINANCIAL ENGINEERING,NOT ECONOMIC PHOTOGRAPHY

In recent years, significant studies of finance have explored, on the one hand, the ways in which a specific financial theory might act as a ‘performative utterance’ which through its use makes itself true and, on the other hand, the ways in which discourses and practices of finance might act as continuous performatives that constitute key categories of finance and the financial subject. On first glance, the idea of self-actualising financial theory might seem closer to J. L. Austin's original conception of the performative utterance. However, in this article, I argue for the need to reclaim the Austinian heritage for the broader and more generic understanding of performative finance as well. In this sense, I suggest, a return to Austin reveals the importance of maintaining a focus not only on the potential performance of financial theory, but also those discourses and practices of finance that make up the deeper layers of performativity. I use questions about the role of financial engineering in the sub-prime crisis to illustrate that it is only through a conception of performative finance as self-actualising theories and as discourses and practices that the often obscured layers of financial engineering in society can be fully understood.     

From Artisan to Partisan

This article confronts the question of what a revitalized financial sector might look like if this were to be reconfigured so as to reproduce first an artisanal-like persona for the financial analyst and craft-like organizational structure for financial businesses, and second if this were to be re-territorialized so that it acted like a partisan rather than, as at present, like a disembedded footloose structure of ‘global finance’. Initially the analysis is pitched at a rather abstract and theoretical level – pulling together artisans, nomads and partisans and tracing their intellectual lineages. But the chapter ends with three very concrete illustrations of actual financial relations in practice that meet some of the criteria for being both artisanal and partisanal.     

Financial performativity as evidence of immanence: the phenomenology of liquidity crisis in contemporary markets for risk

The sociologist Bruno Latour has often expressed aversion to immanent critique, framing actor-network theory in terms of focus on visible phenomena. In spite of this, research on financial performativity inspired by Latour’s perspective can still be interpreted in terms of immanent critique and related to Political Economy (a critical discipline), through Kant’s critique of metaphysics as a ‘regulative axiom’. Research on financial performativity has uncovered evidence of the existence of constructive processes that show how an idea (like a financial model) can become something like an ‘object’. This ‘objectivity’ appears to contradict Kant’s critique of metaphysics – that there always remains a gap between our ideas and the world itself. This paper therefore explores financial performativity as a ‘contradiction’, historicizing it to argue that ‘Barnesian performativity’ and ‘financial liquidity’ are ‘immanent’ to one another in the events of recent financial crises. The paper conducts this interpretation to provide a new conceptualization of ‘financial liquidity’ that is more empirically apparent, helping to overcome some of the limits in the discussion of ‘liquidity’ in Political Economy (that Latour might want to highlight), where discussion occurs in metaphysical terms difficult to connect to actual events.     

Facing future uncertainties and risks through personal finance: conventions in financial education

ABSTRACT

A crucial component of the neoliberal regime is the shift of responsibility for individuals’ financial well-being and security from the state and other public bodies to the individuals themselves, who are required to take responsibility for their own financial decisions and their current and future economic situation. This project of responsibilization presumes a world in which calculative subjects can estimate and manage future risks. Nonetheless, compelled to engage with the financial sphere as a key means of assuring their economic security, individuals are exposed in fact to the fundamental uncertainty of financial markets. In this article, we examine conventions formulated and communicated by financial education programs as cognitive devices geared to prompt individuals to imagine and engage with finance as a site of knowable, calculable and manageable risks, rather than as a site of fundamental uncertainty. Aiming to instill among the general public a particular cognitive frame based on the idea that possible futures are assessable and the risks that they carry can be managed through engagement with financial products and services, these conventions contribute to the normalization of financial logics in everyday life and the incorporation of the general population into the process of financialization.     

COMPLEXITY THEORY AFTER THE FINANCIAL CRISIS

Amongst the many calls for regulatory reform voiced in the wake of the global financial crisis, the contributions of Andrew G. Haldane and his colleagues at the Bank of England stand out as some of the most politically and intellectually ambitious. In 2009, Haldane, the Bank's Executive Director of Financial Stability, delivered a speech advocating the integration of complex systems theory (particularly as developed in the field of ecosystems science) into the toolkit of financial regulation. In an effort to understand what is at stake in such calls for theoretical and regulatory regime change, this article traces the prehistory of complex systems thinking in economics. It focuses special attention on two contributions to this minor tradition – the little-known later work of the Austrian neoliberal, Friedrich von Hayek, who elaborated a philosophy of spontaneous economic order on the basis of complex systems theory, and the more recent work of the so-called ‘new institutionalists’, economists who lay claim to the tradition of ‘evolutionary’ philosophy articulated by the neoclassical Alfred Marshall. These exemplary currents in economic complexity theory articulate very similar critiques of the neoclassical orthodoxy yet diverge sharply in their political commitments. This paper situates recent calls to import complexity theory into financial regulation in ambivalent tension between the Austrian and new institutionalist traditions. It concludes with some skeptical reflections on the notion that the financial crisis signals the ‘death of neoliberalism’.     

Shadow banking: a story of the Doppelgänger (the Double) in science of finance

ABSTRACT

After the 2007 financial crisis central bank economists in the US produced a map of shadow banking system, a fragile interconnectedness of regulated and unregulated financial institutions, to explain why the crisis had happened. This piece of cartographic work in banking regulation had two aims: (a) to represent the economic reality, including the parts that were not in regulatory sight, with full realism and (b) to develop a regulatory surveillance regime to monitor shadow banking to prevent future crises. This paper problematises the first aim as a peculiar cognitive response to the knowledge crisis of economics which challenges the consensus on modern finance as post-modern Baudrilliardian simulacra. The paper then introduces a cultural economy perspective to explore the regulatory fear in the second aim of the shadow banking analysis with references to the theme of the Doppelgänger (the Double) in the genre of horror stories. Finally the societal consequences of the control oriented epistemological choices of the shadow banking analysis are problematised by using Michel Serres concepts of foedera natura versus foedera fati.     

Negotiating Global Finance

This paper delineates how stockbrokers in Mumbai negotiate (contest, reconcile and appropriate) global finance. In recent years, the social studies of finance have grown profoundly, enhancing our understanding of finance across disciplinary boundaries. However, the way in which global finance is practised by local stockbrokers in non-western financial markets has received minor attention. Even though the Mumbai financial market is comparatively small, it is an instructive case due to a transition of financial practices over the previous two decades. Despite these rapid changes, the Bombay Stock Exchange (BSE), the oldest exchange in India, and its ‘traditional’ brokers remain active and relatively influential. Drawing on present-day experiences as well as historical recollections of BSE stockbrokers, this article shows that global finance is not an unambiguous or predictable force, but instead negotiated and thus actively shaped by local stockbrokers.     

WAGES OF SIN?

The ‘global credit crunch’ is only the latest and most virulent among a series of financial crises stretching back to the 1970s and beyond. Yet, more than any of its predecessors, the current crisis is being presented in apocalyptical libidinal terms. Accounts of the crisis and its aftermath tend to be predicated on a sharp contrast drawn between prudent, conservative, risk averse, sober financial practice and a more exuberant, greedy, hedonistic, risky counterpart.

This kind psychosexual analysis is neither new, nor does it represent an accurate depiction of the dilemmas and challenges posed by modern finance. It tacitly suggests, for example, that a return to ‘traditional financial values’ (akin to repeated calls for returns to ‘family values’) would restore calm and normality to a system undermined by the excesses of the perverse few.

This paper argues that although a return to ‘traditional values’ is unlikely to solve any of the current problems, the representation of the crisis and its aftermath is significant. The crisis and its aftermath are embroiled in a wider fundamentalist and puritanical backlash against ‘hedonistic’ capitalism. It represents not a crisis of capitalism as a whole, but a schism within (predominantly) financial communities over the morality and acceptability of ‘risk’. As such, a strongly libidinal language already common within the markets is being adapted and redeployed to create new divisions and exceptions in the context of crisis.     

HALDANE'S GAMBIT

This article considers the body of work which Andrew Haldane has published since the onset of financial crisis. It draws a distinction between two kinds of criticism in that work: Haldane's interference through political arithmetic on the costs of finance and Haldane's big concept of the financial network using metaphors drawn from the life sciences. His readers have mainly focused on Haldane's innovation through concept and network metaphor while neglecting his political arithmetic and empirics on the costs of finance. But this article argues that Haldane's political arithmetic on costs is an important radical intervention when the finance sector is deflecting reform with a trade narrative about the social benefits of finance.     

ENACTING OVERLAPPING MARKETS

During the last two decades, the financial sector has been characterized by dramatic growth as well as increased specialization and professionalization. Today, a host of more or less clearly delimited professional groups enact the machinery of the financial markets. The concerted work performed by these groups does not, however, presuppose that they share a similar view of the markets they enact. Employing the notion of boundary object, this article explores how two specific groups of market professionals, traders and analysts, construct the identities of shares. Differences in the two groups' respective versions of these objects are also found to contribute to the enactment of different, yet overlapping versions of markets.     

Cryptocurrencies as market singularities: the strange case of Bitcoin

Since its creation in 2009, the electronic currency Bitcoin has generated volumes of online debate in the business press. While there have been plenty of economic arguments situating it as a financial bubble about to collapse including from Nobel Prize winning economists, its price value has proven to be more durable than many have predicted. To explain this durability, Karpik’s conception of market singularities is used to understand the Bitcoin phenomenon by outlining the beliefs that maintain Bitcoin’s status as a volatile financial asset. Market singularities are markets for particular kinds of goods and services that are of uncertain and incommensurable value. Singularities markets have communities of followers and a distinctive belief system that ascribes value to a particular product, service, or asset. Developing Karpik’s conception, the paper explores the libertarian political belief system that surrounds Bitcoin’s status as a financial asset. I also outline some political tensions within the electronic currency community concerning governance and centralisation.     

The noise of thoughts: The turbulent (sound‐)worlds of Jean‐Luc Godard

This article examines the role of noise in various aspects of Jean‐Luc Godard's filmmaking practice. Beginning with an analysis of 2 ou 3 choses que je sais d'elle (1966), it suggests that the loud noise on the soundtrack functions to disrupt the search for meaning in this film that is precisely about knowledge and cognition, providing an image of thought as an unpredictable and uncontrollable process. The influence of 1970s theoretical biology and information theory is analysed in Sauve qui peut (la vie) (1979) which applies Henri Atlan's ‘order from noise’ principle to the composition of shots, the construction of scenes and the development of narrative. Finally Godard's presentation of a complex, deterritorialised capitalist economy is considered in Nouvelle Vague (1990), and it is suggested that Godard's creation of aesthetic events – both through editing and through sound design – implies a different conception of temporality to the sequential logic of financial speculation and risk management.     

Iran: archaeological heritage in crisis: Developing an effective management system for archaeology

The dynamic social development in Iran over the last decades provided the acknowledgement of the archaeological heritage on the one hand, and a confrontation to the current managing system of archaeology on the other. This situation makes it necessary for archaeologists to formulate and implement a systematic regulation in the sphere of protection and management of the archaeological heritage. The fact is that, as the international conventions warn, the archaeological heritage is constantly under threat of destruction, and while in Iran the problem is not new, the destruction is on the increase. The constructions under the developmental projects and at the same time the increase of population are accompanied by the expansion of the new settled areas threaten large areas of archaeological sites. The deep economic crises of the country as well as a pauperization of majority of society, and a low degree of respect for the law, lead to an increase in looting and considerable damage to the archaeological heritage. The goals of this paper are (1) to identify problems that hinder the effectiveness of the Iranian national protection acts, and to suggest some way in which these problems could be remedied, (2) to promote further academic discussions of problems and solutions within archaeology and related fields, and (3) to encourage official authorities and other interest groups to press for changes needed in the Iranian national protection policies, to make it better serve the public interest.     

Business schools,the anxiety of finance,and the order of the ‘middle tier’

Financial imagination plays a fundamental, yet ambivalent role in the establishment of hierarchies within and between business schools, and in business life at large. This study examines this process in the ‘middle tier’ of business education: that is, in the social space in which students and instructors understand themselves to occupy a ‘mid-range’ position within an order of excellence and success. Largely articulated through business school rankings, this order strongly relies on the centrality of the financial curriculum, proficiency in which is understood as both a proxy for smartness and a sign of moneymaking capacity. In the ‘middle tier’, this order manifests in the form of an anxiety: an order that, though legitimate, is thought not to be attained, or hardly attainable. The study draws from ethnographic investigation in a ‘middle tier’ business school with attention to how finance is made sense of in relation to an alternative curriculum, and in connection with the aim of ‘making it to the top’. A comparison with a ‘top tier’ business school allows furthering understanding of how the order of business schools relies on the anxiety of finance in order to reproduce an acquiescence to dominant financial imagination.     

An assemblage of framings and tamings: multi-sited analysis of infrastructures as a methodology

ABSTRACT

The social life of methods – the idea that research methods are an important topic of inquiry in and of themselves – has been receiving increasing interest in scholarship on the organisation of the economy and social life, including Science and Technology Studies (STS). In STS, especially ethnographic methods have been important for decades. This article develops an ethnographic methodology for the study of a very new case that challenges the assumptions underpinning many STS ethnographies. This case is the networked energy infrastructure, and we specifically focus on its risk management and markets. Drawing upon recent STS interest in multi-sited ethnography, the article’s research design is termed the multi-sited analysis of infrastructures (MSAI), and it develops the concepts of framing and taming to focus on meaning formation as mundane sense-making and as technicalised reasoning on different sites. We demonstrate these concepts in a multi-sited ethnography of energy infrastructure and its risk management and market activities in public regulation, special control rooms (including energy trading), and households. The article rounds up by explaining how the application of our methodology contributes to the advancement of interests in multi-sited ethnography, relating our research to the previous work in the fields of STS, infrastructure studies, and their methods.     

A Cultural Political Economy of Research and Innovation in an Age of Crisis

Science and technology policy is both faced by unprecedented challenges and itself undergoing seismic shifts. First, policy is increasingly demanding of science that it fixes a set of epochal and global crises. On the other hand, practices of scientific research are changing rapidly regarding geographical dispersion, the institutions and identities of those involved and its forms of knowledge production and circulation. Furthermore, these changes are accelerated by the current upheavals in public funding of research, higher education and technology development in the wake of the economic crisis. The paper outlines an agenda for science & technology policy studies in terms of a research programme of a ‘cultural political economy of research and innovation’ (CPERI). First, the implications of the overlapping crises for science policy analysis are discussed. Secondly, three rough constellations of contemporary approaches to science policy are critically compared, namely: a techno-statist Keynesian governance; a neoliberal marketplace of ideas; and co-productionist enabling of democratic debate. CPERI is then introduced, showing how it builds on the strengths of co-production while also specifically targeting two major weaknesses that are of heightened importance in an age of multiple crises, namely neglect of political economy and the concept of power.     

Documenting financial performativity: film aesthetics and financial crisis

Marc Bauder’s finance film, Master of the Universe (2013) won the European Documentary Film Prize in December 2014. Bauder’s film focuses on a series on interviews with a former leading investment banker, Rainer Voss, high up in one of Frankfurt’s deserted bank skyscrapers. Voss’s statements, set against the skyline of Frankfurt’s ‘Mainhattan’ financial sector, allow Bauder to constitute an aesthetic that, I argue, successfully addresses a key problem in moving image studies, namely how to find an appropriate film form to register the workings of contemporary finance. Bauder’s film offers an unusual depiction of the self-constitution and self-understanding of a banker-turned-whistleblower, focusing on Voss’s speech acts of explication and justification. Drawing on Judith Butler’s analysis of performative agency and of the separation of economics and politics through iterative perlocutionary acts, I argue that Bauder’s investigation into the performativity that establishes the autonomy of the financial sector and grants it extensive social power offers a significant aesthetic engagement with financial performativity and contributes to debates about documentary and performativity and about routes to a reconnection of economics and politics.     

The war of 1870 in the pattern of Franco‐German relations

The worlds of the living and the dead might seem irrevocably cut off from one another. Nevertheless, an important strand of modern thought attempts to find some form of intelligibility emanating from the dead. Paul de Man's discussion of prosopopoeia suggests the possibility of giving voice to the dead, though this turns out to be a form of delusion inherent in language. Emmanuel Levinas, arguing against Heidegger, seeks to maintain a relationship with the other beyond death, and Giorgio Agamben tries to find meaning in the silent testimony of victims of the Holocaust. This article examines these various attempts to mediate with the dead and suggests that it may be impossible to eliminate the risk of imposing our own words on those who cannot speak. However, a readiness to be surprised by unanticipated meanings may be the necessary condition to finding signifying sources outside ourselves.