'Value' and urban studies under the domain of finance. Reflections on Time Value Money (TVM) based on the critique of political economy
DOI:
https://doi.org/10.62174/quid16.i21_a408Abstract
In recent decades, some changes in the development of world capitalism have been described according to the phenomenon of financialization and several works have advanced in the approach between finance and the production of urban space. However, its widespread use led to criticisms arguing the need to “open the black box of finance”, claiming to deepen knowledge with regards to what this financialization would be and how it is constituted, seeking to understand its materiality and its imbrications in everyday life. In this context, part of urban studies developed research associated with constructivist sociology, which starts from a social approach to value, understood as an unequivocally flexible construction. This literature has been dedicated to understanding the instruments and mechanisms used by financial engineering, which is based on the idea that money has a time value (Time Value of Money - TVM), arguing that these “calculating” practices that project the future are translated into present material transformations, producing their own future and being, therefore, performative. Based on a bibliographic review, this study aimed to discuss these works, reflecting on their contributions based on critical political economy, seeking to understand the role of financial engineering from the theory of value. The hypothesis discussed here is that, by understanding this financial engineering, its metrics and practices as activities that, instead of creating value, drive the increased real estate prices –by combining the calculations of traditional industrial production (construction) with the calculations of future profitability (capitalization)–, it is possible to situate these contributions to the movement of capital and their imbrications with the relationships between value and price.Downloads
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