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Volume 1: The era of breakups
La Financial economics review Publish his Number 160, first volume of a diptych devoted to geopolitical changes And to economic and financial fragmentations that are profoundly redesigning the world order.
Coordinated by Bruno Cabrillac and Pierre Jaillet, this issue is published in French and in English, underlining the international scope of the issues analyzed.
Entitled “The era of breakups”, this first volume looks back on the succession of major shocks which, since the beginning of the 2020s, have tested the foundations of globalization: Covid-19 pandemic, war in Ukraine, energy crisis, inflationary surge, rise in protectionism and the growing use of economic and financial sanctions.
Taken together, these shocks shape a systemic polycrisis, revealing the fragility accumulated over several decades of economic and financial integration.
The number analyzes the recomposition of international trade, the return of power ratios, the fragmentation of value chains, the rise of a “war economy” logic, as well as the new challenges of monetary and financial sovereignty, in a context marked by Sino-American rivalry and the questioning of multilateralism.
Among the major contributions of this issue is the article “Geofinance, interactions between geopolitics and finance: a historical perspective”, signed by André Lévy-Lang and Julien Pincet.
In this reference article, the authors propose a Long-term reading interactions between finance, economy and geopolitics, from Antiquity to the contemporary world. They show how finance has gradually become a central instrument for power relationships, especially since the end of the gold standard in 1971 and, more recently, through the “weaponization” of the dollar and international financial infrastructures.
This evolution has favored the emergence of alternative circuits and contributes to the multipolarization of the global financial system.
This contribution is fully in line with the work developed atLouis Bachelier Institute (ILB) around the concept of geofinance, which analyzes the growing intertwining between geopolitical strategies and financial mechanisms.
André Lévy-Lang, Founding President of the Louis Bachelier Institute, Chairman of the Supervisory Board of the Fondation du Risque, former Chairman of the Board of Directors of Paribas and member of several leading academic institutions, is one of the pioneers of this approach.
Julien Pincet, researcher at ILB and responsible for the research of the project Geofinance launched in January 2024, mobilizes a double academic and professional expertise in risk analysis, payment systems, monetary economy and geo-economy.
Readers wishing to explore these issues in greater depth can also refer to the article. “Geofinance, the intertwining of finance and geopolitics”, published in Opinions & Debates (no. 31, September 2024), which extends and structures this analysis framework.
These reflections also gave rise to several contributions published on the platform. Expert views ofthe Caisse des Dépôts, including:
A second volume, the Number 161 ofthe Financial economics review, entitled “The era of recompositions”, will complete this reflection.
It will explore the perspectives opened up by these fragmentations : evolution of global economic hierarchies, role of the European Union, recomposition of the international monetary and financial system and the future of global governance.
