ANNULÉ / CANCELED : The Financialization of Public Finances and its Legal Implications
Although the connection of the public finances (of sovereign states) and the financial market is hardly a news (R. Pellet), the recent (at latest, since 1970s) trend of “financialization” of capitalist economy has brought it to a new stage. A term “financialization” usually denotes a phenomenon in which the size and importance of a country’s financial sector increases relative to its overall economy, but here I particularly associate the term with the increasing embeddedness of states’ public finances within the globalized financial market, caused by ageing demography (of post-industrial nations) and the globalized flow of capital. I argue that such a theoretical framework is helpful (and in my view, even crucial) for legal scholars to appreciate the nature of public finances problems, most notably sovereign debt crisis, not solely as domestic (and supra-national in Europe) public law matters, but rather as the intersectional issues among domestic public law, transnational private law, and international order of monetary and financial systems. I shall also stress its pedagogic significance, so as to reinvent the “public finances” as the law school subject in the era of globalization of law.