Financialization

Finance has long been an integral part of the capitalist economy, yet since the 1970s the realm of finance has burgeoned, reaching well beyond its traditional funding roles. Finance now reaches into all aspects of economic life from the everyday activity of the individual, to the behaviour of corporations and the decisions made for society as a whole. The power and fragility of the financial sector are seen by the simple fact that when things go wrong, it can bring down banks, currencies, and governments, plunging countries into generations of debt and hardship.

Malcolm Sawyer offers a comprehensive survey of the impact of financialization on economic growth and society. The book draws on and distills a remarkable range of research to provide readers with a guide to current thinking about the place of finance in the wider macroeconomy and considers the prospects for definancialization and a future role that is less pervasive.

1. Introduction

2. The terrain of financialization

3. Financialization, neoliberalism and globalization

4. The characteristics of (variegated) financialization in the present era

5. The global reaches of financialization

6. Financial liberalization and financial crisis

7. Financialization and the pursuit of shareholder value

8. Financialization: a driver of inequality or an enabler?

9. Financialization of everyday life

10. Has the financial sector become too big and dysfunctional?

11. De-financialization