Irrational or Rational? Time to Rethink Our Understanding of Financially Responsible Behaviour

Ariane Agunsoye, Goldsmiths, University of London (Paper co-authored by Hayley James, Aston University)

Ariane Agunsoye is a Senior Lecturer in Economics at Goldsmiths, University of London. In this CHASM seminar, Ariane will present key insights from her recently published paper, co-authored with Hayley James. This paper shows the diverse meaning-making processes when experiencing constraints, highlighting limitations of the current asset-based welfare system. Models of finance rationality expect individuals to actively prepare for retirement by consistently investing and building a diversified asset portfolio, with any behaviour deviating from these expectations being identified as irresponsible.

This framework of (ir)rationality and (ir)responsibility ignores the role of constraints in shaping financial behaviour. Extending economic geographic insights on everyday financial practices as complex processes of meaning-making, the paper reveals how varied approaches to retirement savings are shaped by the experience of constraints inherent in a capitalist welfare state, contributing to the theorization of variegated financial subjects and disrupting the application of current corrective policy measures. 

About Ariane

Ariane’s current research interests are centred on the intersection between political economy and personal finance, exploring how people across a variety of social and demographic backgrounds respond to the rising pressure to manage financial risk. In addition to her interest in everyday financialization, she researches the impact of EDI initiatives on knowledge production and dissemination. In line with these interests, she is an Associate Member of the Centre for Personal Financial Wellbeing at Aston University, on the steering committee of D-Econ, a network of economists who aim to promote inclusiveness in economics, and on the management committee of the Association for Heterodox Economics. 

If you would like to attend this online CHASM Seminar, please email Helen Harris – chasm@contacts.bham.ac.uk – and the Zoom link will be sent to you.