Financial instruments shape markets rather than merely read them

Evidence

Consider, for instance, the culture of mutually reinforcing belief and credulity (explored in earlier chapters) that is reproduced in the financial sector’s various interlinked institutional environments, from hedge funds and investment banks to government regulatory offices and the financial press. Consider the “performative” dimensions of finance capital, from the preemptory role of financial instruments in shaping (not just reading) financial markets to the speech acts of CEOs and central bank chiefs. Consider the ways in which financial value of relies not only on the culture of particular organizations, but also on the broader field of sociocultural understandings, and how “metaphoric wealth” helps shape and transform the understandings and the negotiations of value in society at large (see Chapter 1). — Max Haiven, Cultures of Financialization, 401

Categorization

• XREF: The performativity-of-finance claim connects directly to Callon/MacKenzie performativity literature — and to the reader’s deWaard bridge on culture as financial infrastructure. — connects to: Monetary and financial markets remain inseparable from the economy of regard — Donald MacKenzie & Yuval Millo, Constructing a Market, Performing Theory, 201; Financial pricing formulas actively construct the markets they purport to measure — Max Haiven, Cultures of Financialization, 84; Financial economics actively alters markets rather than merely describing them — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 64 (+6 more)
• DEFINE: ‘Performative dimensions of finance capital’ — instruments preemptorily shaping markets — is a precise definition of financial performativity worth caching.

Broader Connections

• Financial economics actively alters markets rather than merely describing them #corroborates (1.00) — Donald MacKenzie, An Engine, Not a Camera, 64
• A market model can shape markets actively rather than merely describing them #corroborates (0.95) — Donald MacKenzie, An Engine, Not a Camera, 1165
• Finance theory shapes markets through the linguistic infrastructure it provides practitioners #corroborates (0.90) — Donald MacKenzie, An Engine, Not a Camera, 1128
• The discovery-then-acceptance narrative misdescribes how financial economics shaped markets #expands (0.85) — Donald MacKenzie, An Engine, Not a Camera, 386
• Modern financial markets are deliberately designed entities #expands (0.80) — Donald MacKenzie, An Engine, Not a Camera, 1235
• Index funds directly implemented financial economics’ efficient-markets claims #exemplifies (0.80) — Donald MacKenzie, An Engine, Not a Camera, 134