International Finance and Geopolitics
The research group “International Finance and Geopolitics” studies how the shifting global economy and rising geopolitical tensions affect financial globalization, cross-border lending, and the resolution of financial crises and conflicts.
A key focus of this research group is the fragmentation and politisation of global finance. We explore the geopolitics of global capital allocation across 200 years and focus, in particular, on state-driven (official) lending, which is typically extended by states and state-owned banks. The central idea behind this agenda is that states are “back” in international finance, influencing where and how capital is allocated across borders. We ask: Does China’s rise lead to further economic integration or rather to a fragmentation of global finance into competing blocks? What are the consequences of great power rivalry for investor returns and the size and direction of cross-border capital flows? And what explains foreign support in wars and crises?
