Governments as Market Players: State Innovation in the Global Economy (original) (raw)

The paper explores how governments are evolving into active players in the global financial market, particularly through actions such as establishing sovereign wealth funds (SWFs) and engaging in risk management that mirrors private behavior. It argues that rather than receding from the economic scene, states, particularly in emerging markets, are increasingly taking on a dual role as both suppliers and consumers of financial assets. This shift highlights a complex relationship where states facilitate financial globalization while also managing their own internal structures to adapt to these changes.