Dr. Steffen Murau – The political economy of the modern credit money system
Dr. Steffen Murau| steffenmurau.com

How does the modern credit money system work?

The answer is not so straightforward. To dig deeper, we need a powerful monetary theory, a thorough understanding of monetary history and cutting-edge insights into the contemporary shadow banking system. Learn more ...

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What is political economy in the age of financial globalization?

To understand capitalism in the 21st century, we need adequate categories beyond the nation state and a simple states-markets dichotomy. Financial globalization works through a public-private hybridity and the offshore world. Learn more ...

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How has the 2007-9 Crisis changed the monetary system?

The year 2008 marked a seismic shift in the way that money works, in the United States and beyond. The emergency crisis interventions of the Federal Reserve and the US treasury have created a new role for the state in the monetary system. Learn more ...

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How to govern global money in the offshore world?

The international monetary system is a privatized offshore US dollar system. It emerged through crises and financial innovation, not intelligent design. Only when we learn where it comes from can we understand how to govern it. Learn more ...

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What future for European monetary integration?

The introduction of the Euro has solved old problems just as much as it has produced new issues. With QE and TARGET2 balances, Banking and Capital Market Union, the quest for a sustainable European monetary setup is ongoing. Learn more ...

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Dr. Steffen Murau

Postdoctoral Researcher in International Political Economy

I am a political economist specialized in international money and finance.

My research covers three major themes: private credit money accommodation, the international monetary system, and the European Monetary Union.

I currently carry out a research project on the transformation of the Eurozone architecture at the Global Development Policy Center of Boston University. Moreover, I have postdoctoral affiliations with the City Political Economy Research Centre (CITYPERC) at City, University of London, and the Institute for Advanced Sustainability Studies (IASS), Potsdam. In the academic year 2017-18, I was a postdoctoral fellow at Weatherhead Center for International Affairs of Harvard University.

I hold a PhD in International Political Economy from City, University of London (2017); a Magister Artium in political science, philosophy and international law from Ludwig-Maximilians-Universität (LMU) München (2012); and a Bachelor of Science in economics from LMU München (2011). In 2015, I was a visiting doctoral research scholar at Columbia University, New York.

Beyond my academic work, I am a board member of the Young Initiative for Foreign Affairs and International Relations (IFAIR) e.V. — a non-profit, non-partisan organisation dedicated to promoting greater involvement of young people in international affairs through publications and transnational projects.


The political economy of the modern credit money system

Private Credit Money Accommodation

Private credit money accommodation is a theory on the long-run transformation of the modern credit money system. During financial upswings, new forms of private credit money emerge as “shadow money”. At the end of the boom, they implode in a systemic financial crisis. When the state steps in and guarantees them, they are “accommodated” into the public money supply. Public money today is accommodated private credit money of the past.

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International Monetary System

The international monetary system of the 21st century is a privatized offshore US Dollar system. This arrangement has gradually evolved since the 1950s and replaced the state-planned Bretton Woods System when it collapsed in the 1970s. Today, international monetary affairs are primarily organized through private banks and shadow banks that use the US dollar as the unit of account and operate offshore, outside of the reach of established monetary institutions.

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European Monetary Union

The European Monetary Union is a unique experiment in monetary history. Its initial design only made central bank money truly European, but left commercial bank and shadow bank money predominantly national. After a decade of smooth sailing, it entered into crisis mode in 2009 and has never fully recovered. Through endogenous change and political interventions, it now has an architecture that nobody has planned. It is continuously transforming and difficult to govern.

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Peer-reviewed journal articles, PhD dissertation, discussion papers, book chapters, think tank articles, policy-oriented work

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Recent activities in the web and on social media

  • “Shadow money should be tamed, not banned”

    15 Oct 2018 | Kapp Prize recipient Steffen Murau on what we can learn from the Financial Crisis. An interview by Dr. Bianca Schröder
    Congratulations on being awarded the Kapp Prize of the European Association for Evolutionary Political Economy! In your article you analyse the impact of the 2007–2009 Financial Crisis on the monetary system. How did you approach that topic?
    I did the empirical research for this article during a research stay at Columbia University in New York. It is based on publications by international financial institutions and interviews with employees of the Federal Reserve, banks, and the International Monetary Fund. Read more…

  • Shadow money researcher wins award for journal article based on PhD study

    9 Oct 2018 | Dr Steffen Murau has been presented with the EAEPE journal article of the year award.
    A researcher who completed his PhD at City has won a prestigious award for an article based on his doctoral thesis. Dr Steffen Murau’s paper on shadow banking and the global financial crisis was named the best journal article of the year by the European Association for Evolutionary Political Economy (EAEPE). Read more…

Another great @eaepe is over, we did many things and raised many relevant research and policy questions. Collaborated with @ysi_commons and from now on the new task: to coordinate research area [J] on Finance and Financial Institutions with @steffenmurau Looking forward🤓

When does proper citation end and questionable use begin? Below some passages from my article 'Democracy and the ECB's Emergency Powers" and a recent review article on the @ecb TARGET2-balances (in a ranked @ELSFinance journal)

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