IDEAS home Printed from
   My bibliography  Save this paper

Economic Discourse and the European Integration of Financial Infrastructures and Financial Markets


  • Troels Krarup

    (Sciences Po)


European integration of financial markets appears to repeatedly encounter specific kinds of problems about the substance and limits of the notion of “the market” undergoing integration, and about the status and role of money, market infrastructures, and government within it. Moreover, these problems and the controversies around them parallel classical discussions in economic theory such as that between conceptions of the market as a frictionless space and as a process of competition. A “competitive conception of the market” is identified as producing these parallel problems and controversies in European market integration and economic theory because it implies a contradictory “integration of fragmentation.” These themes and parallels can be specifically identified in a recent major project to integrate financial market infrastructures: a pan-European settlement platform – “Target2-Securities (T2S)” – to overcome existing fragmentation between the systems that perform the actual delivery of money and securities from financial transactions. Moreover, a close analysis of T2S answers a question that existing sociological and political economy approaches to European integration – focusing primarily on the interests and ideas of powerful players – struggle with: why T2S will become de facto a monopoly for the European Central Bank when early on in the integration process EU institutions emphasized an industry-led integration. Foucault’s notion of “discursive formation” is employed to conceptualize these arguments.

Suggested Citation

  • Troels Krarup, 2016. "Economic Discourse and the European Integration of Financial Infrastructures and Financial Markets," Sciences Po publications 16/2, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/5roa67nl3t9vmaafofq0ug2d9d

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Serifsoy, Baris & Wei[ss], Marco, 2007. "Settling for efficiency - A framework for the European securities transaction industry," Journal of Banking & Finance, Elsevier, vol. 31(10), pages 3034-3057, October.
    2. Jonathan Story & Ingo Walter, 1997. "Political Economy of Financial Integration in Europe: The Battle of the Systems," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262692031, December.
    3. Ingham, Geoffrey, 2004. "The nature of money," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 5(2), pages 18-28.
    4. Michel Callon & Yuval Millo & Fabian Muniesa, 2007. "Market Devices," Post-Print halshs-00177891, HAL.
    5. Fabian Muniesa & Dominique Chabert & Marceline Ducrocq-Grondin & Susan V. Scott, 2011. "Back-office intricacy: the description of financial objects in an investment bank," Industrial and Corporate Change, Oxford University Press, vol. 20(4), pages 1189-1213, August.
    6. Beckert, Jens, 2007. "The social order of markets," MPIfG Discussion Paper 07/15, Max Planck Institute for the Study of Societies.
    7. Donald MacKenzie, 2006. "An Engine, Not a Camera: How Financial Models Shape Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262134608, December.
    8. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    9. Marion Fourcade & Rakesh Khurana, 2013. "From social control to financial economics," Post-Print hal-03473899, HAL.
    10. Patrick Van Cayseele, 2004. "Competition and the Organisation of the Clearing and Settlement Industry," Working Papers of Department of Economics, Leuven ces0413, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    11. repec:hal:spmain:info:hdl:2441/5oi5d12qn3983q921gleelod94 is not listed on IDEAS
    12. Brunner, Karl & Meltzer, Allan H, 1971. "The Uses of Money: Money in the Theory of an Exchange Economy," American Economic Review, American Economic Association, vol. 61(5), pages 784-805, December.
    13. Panourgias, Nikiforos S., 2015. "Capital markets integration: A sociotechnical study of the development of a cross-border securities settlement system," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 317-338.
    14. Fabian Muniesa & Yuval Millo & Michel Callon, 2007. "An introduction to market devices," Post-Print halshs-00177928, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krarup, Troels, 2016. "Economic discourse and the European integration of financial infrastructures and financial markets," MaxPo Discussion Paper Series 16/2, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    2. repec:hal:spmain:info:hdl:2441/5roa67nl3t9vmaafofq0ug2d9d is not listed on IDEAS
    3. Troels Krarup, 2016. "Economic Discourse and the European Integration of Financial Infrastructures and Financial Markets," Working Papers hal-03459272, HAL.
    4. Troels Krarup, 2016. "Economic Discourse and the European Integration of Financial Infrastructures and Financial Markets," SciencePo Working papers Main hal-03459272, HAL.
    5. Boussard, Valérie & Godechot, Olivier & Woloszko, Nicolas, 2016. "How to make a deal: The role of rankings and personal ties in creating trust in the M&A market," MaxPo Discussion Paper Series 16/3, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    6. Antoine Ducastel & Ward Anseeuw, 2017. "Agriculture as an asset class: reshaping the South African farming sector," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(1), pages 199-209, March.
    7. Josh Ryan-Collins, 2015. "Is Monetary Financing Inflationary? A Case Study of the Canadian Economy, 1935-75," Economics Working Paper Archive wp_848, Levy Economics Institute.
    8. Radwanski, Juliusz, 2020. "On the Purchasing Power of Money in an Exchange Economy," MPRA Paper 104244, University Library of Munich, Germany.
    9. Peter N. Ireland, 2017. "Allan Meltzer’s Model of the Transmission Mechanism and Its Implications for Today," Boston College Working Papers in Economics 938, Boston College Department of Economics.
    10. Walter, Christian, 2016. "The financial Logos: The framing of financial decision-making by mathematical modelling," Research in International Business and Finance, Elsevier, vol. 37(C), pages 597-604.
    11. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," Post-Print halshs-00359712, HAL.
    12. Nick Bernards, 2019. "Tracing mutations of neoliberal development governance: ‘Fintech’, failure and the politics of marketization," Environment and Planning A, , vol. 51(7), pages 1442-1459, October.
    13. Rosemary-Claire Collard & Jessica Dempsey, 2013. "Life for Sale? The Politics of Lively Commodities," Environment and Planning A, , vol. 45(11), pages 2682-2699, November.
    14. M. Fourcade & E. Ollion & Y. Algan, 2015. "The Superiority of Economists," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 7.
    15. Berndt Christian, 2011. "Märkte, Monster, Modelle – kulturelle Geographien der Subprimekrise," ZFW – Advances in Economic Geography, De Gruyter, vol. 55(1-2), pages 35-49, October.
    16. Alvial-Palavicino, Carla & Ureta, Sebastián, 2017. "Economizing justice: Turning equity claims into lower energy tariffs in Chile," Energy Policy, Elsevier, vol. 105(C), pages 642-647.
    17. Claudio Borio & Anna Zabai, 2018. "Unconventional monetary policies: a re-appraisal," Chapters, in: Peter Conti-Brown & Rosa M. Lastra (ed.), Research Handbook on Central Banking, chapter 20, pages 398-444, Edward Elgar Publishing.
    18. Charles I. Plosser, 1989. "Money and business cycles: a real business cycle interpretation," Proceedings, Federal Reserve Bank of St. Louis.
    19. Geoffrey M. Hodgson, 2019. "The great crash of 2008 and the reform of economics," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Third Edition, chapter 28, pages 439-456, Edward Elgar Publishing.
    20. Sarah Bracking, 2012. "How do Investors Value Environmental Harm/Care? Private Equity Funds, Development Finance Institutions and the Partial Financialization of Nature-based Industries," Development and Change, International Institute of Social Studies, vol. 43(1), pages 271-293, January.
    21. McCallum, Bennett T., 1983. "The role of overlapping-generations models in monetary economics," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 18(1), pages 9-44, January.

    More about this item


    European integration; Financial markets; Financial infrastructures; Money;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spo:wpmain:info:hdl:2441/5roa67nl3t9vmaafofq0ug2d9d. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Spire @ Sciences Po Library (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.