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Abstract
The view that a pro-justice politics can be funded by financial markets through options is here considered in the context of other funding approaches. These include financing a larger public sector through taxation and government debt, and Minsky’s proposal to nationalize financial markets in order to eliminate the threats that credit cycles pose to the stability of underlying markets. When the US federal courts tried to implement historical justice through civil rights injunctions these were not typically self-funding—they simply ordered that funding be found. This book’s approach to historical justice foregrounds the funding question. Its stress inverse securities and the issuance of "coin" is contrasted with the finance-based appoaches of Rajan/Zingales and of Shiller. Unlike their efforts to improve/complete financial markets, the chapter argues that the “sudden arrest” of those markets (Caballero) should be on the political horizon of militant movements, which in non-revolutionary times can leverage (by means of options) capitalism’s inherent need to treat threats to its liquidity as heightened volatility that presents arbitrage opportunities for willing investors. The chapter concludes that historical justice really is an option, and that the financial sector has become the emergent site of democratic demands.
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