Webamerica’s ability to guarantee global prosperity is the glue that holds the financial order together. With its legitimacy badly hit, renewed assaults on the system. Webthis chapter discusses the relationship between neoliberalism and finance capitalism or financialisation and establishes a conceptual framework for the link. Financial dominance describes a situation in which a central bank does not dare to tighten its policy stance as this would threaten the stability. Webthis paper sets forth a framework modeling the traditional ‘banking approach’ to central bank liquidity provision and advocates a return to it. Webpolitically induced fiscal dominance jeopardizes the things that make the united states the world’s financial center: Safe government assets and low, stable. Webfinancial dominance describes a situation in which a central bank does not dare to tighten its policy stance as this would threaten the stability of the financial system. Webwhile existing political economy accounts have focused squarely on the issues of government debt and central bankers’ fears of fiscal dominance, we argue for. Webwhereas low debt levels and the need for stimulus allowed monetary and fiscal authorities to act in tandem following the global financial crisis, the prospect of fiscal dominance.
