Financial Geography Lab 2017

DOQ3DvbX4AEMOxPOn 9-10 November I joined the Financial Geography Lab 2017 at Frankfurt School of Finance & Management. The list of participants was the Who is Who of the FinGeo network. It was great to meet and discuss with the leading financial geographer. I presented our paper on identifying financial investment of Dow Jones companies.

‘Our’ refers to the tried and tested collaboration with Dr Shabani. The paper takes stock of liquid assets among large listed non-financial companies (NFCs). One important result is that financial investment (as share of total assets) among Dow Jones listed NFCs has not increased over the past two decades. However, there has been a shift towards more short-term assets, i.e. cash and cash equivalents which refers to assets with a maturity of 90 days and less. Therefore, the current discussion on rising cash holdings among NFCs has to be put into the bigger picture.

cash and fin inv

 

Abenomics and the Transmission Mechanisms of Economic Policy

Abenomics workshop

On Monday 6 November 2017 we held our second Abenomics conference. We refers to our research collaboration including myself, Mimoza Shabani from UEL, Alexis Stenfors (Portsmouth) and Jan Toporowski (SOAS). We started a collaborative research project together with Meiji University, Tokyo, last September. This time we met for a conference in London. Thanks to TIFO for their financial support.

We discussed Japan’s current economic situation and the impact of unconventional monetary policy. Japan has long been ahead of the curve with Quantitative Easing and its somewhat startling that not more economic commentators look to Japan for lessons.

My colleague Dr Shabani and I presented our work (still in progress) on Japanese non-financial corporations (NFCs) and their alleged financialisation. You can find our slides here: Shabani Karwowski_NFC balance sheet recession_20171106.

In a nutshell, we are not convinced that Japanese NFCs are financialised. There have been some excited reports about share buybacks. However, in comparison to 1980s/1990s levels investment into financial assets and financial income (and for that matter also ‘other’ income) are rather low. So if you want, Japan was more financialised during the late 1980s than now.

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