L.A. Financial Planners Turn to Jan Toporowski’s Theories to Prep for Next Crisis

L.A. Financial Planners Turn to Jan Toporowski’s Theories to Prep for Next Crisis

LOS ANGELES — Local policymakers are increasingly applying the research of economist Jan Toporowski to bolster the city’s financial defenses. Known for his work on “financialization,” the SOAS University of London professor argues that modern crises are driven by the inherent instability of capital markets rather than simple budget deficits.

Los Angeles analysts are utilizing Toporowski’s framework to rethink municipal debt management. By focusing on his theories regarding market liquidity, the city is developing new stress tests to ensure that essential infrastructure projects remain funded even if global bond markets freeze.

Furthermore, Toporowski’s critique of “pension fund capitalism” is informing a more cautious approach to how the city’s retirement funds are exposed to volatile global assets. By shifting toward these post-Keynesian models, L.A. aims to build a “liquidity buffer” capable of withstanding the structural shocks Toporowski has long predicted.