City Research Online

A Crisis of the Overcrowded Future: Shadow Banking and the Political Economy of Financial Innovation

Nesvetailova, A. (2014). A Crisis of the Overcrowded Future: Shadow Banking and the Political Economy of Financial Innovation. New Political Economy, 20(3), pp. 431-453. doi: 10.1080/13563467.2014.951428


This article focuses on the role the shadow banking system played in the financial crisis of 2007–9. Engaging with emergent theories of shadow banking, I inquire into its structural role in contemporary capitalism. My main premise here is that the crisis of 2007–9 is distinct in financial history because it did not centre on any organised market. Rather, it was crisis of the overcrowded financial channels bridging the present and the future, which have become congested because of the massive concentration of financial values generated, yet not sustained, through the shadow banking network. My analysis suggests that shadow banking has determined the nature of financial crisis of 2007–9 and continues to play a necessary role in financial capitalism based on futurity. Drawing on scholarship in financial Keynesianism, contemporary legal studies and early evolutionary political economy, I argue that shadow banking is best seen as the organic institutional infrastructure of financialised capitalism based on debt and geared towards futurity, a concept originally developed by John Commons.

Publication Type: Article
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis in New Political Economy on 26 Sept 2014, available online:
Publisher Keywords: shadow banking, securitisation, financial innovation, debt, futurity
Subjects: H Social Sciences
Departments: School of Policy & Global Affairs > International Politics
Text - Accepted Version
Download (501kB) | Preview



Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login