Theory, explanation, and economics in financial geographies

We take stock of theory and explanation in financial geographies between 2001 and 2020. Our analysis confirms the lone ascent of financialisation to the status of leading theory and shows that economics, particularly the financial variety, has been gradually pushed away from financial geographies in a shift that accompanied the decline of quantitative research approaches. We explain how these developments are interrelated and argue that they pose challenges to the role of explanatory theory, particularly in terms of its practical adequacy, understood as analytical robustness in explaining empirical outcomes, and usefulness for the practice of positive social change. We propose that these challenges need to be addressed by strengthening relationships between financial geographies and varieties of economics. We illustrate opportunities for such engagement in three broad areas: quantifying financialisation, sustainable finance, and decentralised finance.