What Theory? The Theory in Mad Money
CSGR Working Paper No. 18/98
31 Pages Posted: 25 May 1999
Date Written: December 1998
Mad Money (Manchester University Press, 1998) is the completely rewritten and updated version of Casino Capitalism (Blackwells, 1986). It has been suggested--of both volumes--that there was no theory underlying Strange's discussion of the international financial system in them. This she argues in this Working Paper is emphatically not the case. Both volumes always implicitly, and often explicitly, are underpinned by the dominant themes that are reflected in Strange's work since the publication of "International Relations and International Economics: A Case of Mutual Neglect," International Affairs, 46 (2) 1970. These themes are three-fold: (i) a need to privilege the politics of the international financial system in the study of international relations: a discipline too long myopic in its focus on violent conflict and war between states at the expense of all else. (ii) A need to go beyond liberal political and economic theory and recognize the significance of "structural power" in the international system. (iii) A need to recognize that "the areas of significant ignorance" in our understanding of the role of the international financial system in an era of technological revolution and globalization are becoming greater rather than smaller. For Strange, the structural power of capital is not constant and, therefore, cannot be accommodated in the logic of liberal economics. Thus, using the dictionary definition of mad--erratic, unpredictable, irrational behavior, damaging not only to sufferers but also to others--we have, as she puts it "mad money."
JEL Classification: F39
Suggested Citation: Suggested Citation