Topic
Financialization
About: Financialization is a research topic. Over the lifetime, 2704 publications have been published within this topic receiving 55580 citations.
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TL;DR: In this article, the authors present systematic empirical evidence for the financialization of the US economy in the post-1970s period and develop two discrete measures of financialization and apply these measures to postwar US economic data in order to determine if, and to what extent, US economy is becoming financialized.
Abstract: This paper presents systematic empirical evidence for the financialization of the US economy in the post-1970s period. While numerous researchers have noted the increasing salience of finance, there have been few systematic attempts to consider what this shift means for the nature of the economy, considered broadly. In large part, this omission reflects the considerable methodological difficulties associated with using national economic data to assess the rise of finance as a macro-level phenomenon shaping patterns of accumulation in the US economy. The paper develops two discrete measures of financialization and applies these measures to postwar US economic data in order to determine if, and to what extent, the US economy is becoming financialized. The paper concludes by considering some of the implications of financialization for two areas of ongoing debate in the social sciences: (1) the question of who controls the modern corporation; and (2) the controversy surrounding the extent to which globalization has eroded the autonomy of the state.
1,803 citations
Posted Content•
TL;DR: The authors found that futures prices of different commodities in the US became increasingly correlated with each other and this trend was significantly more pronounced for commodities in two popular GSCI and DJ-UBS commodity indices.
Abstract: This paper finds that, concurrent with the rapid growing index investment in commodities markets since early 2000s, futures prices of different commodities in the US became increasingly correlated with each other and this trend was significantly more pronounced for commodities in the two popular GSCI and DJ-UBS commodity indices. This finding reflects a financialization process of commodities markets and helps explain the synchronized price boom and bust of a broad set of seemingly unrelated commodities in the US in 2006-2008. In contrast, such commodity price comovements were absent in China, which refutes growing commodity demands from emerging economies as the driver.
990 citations
Book•
27 Nov 2006
TL;DR: In this paper, the authors discuss the relationship between financialization and the US economy and the International Monetary System. But they focus on the distributional and distributional implications of financialization.
Abstract: Preface Part I: Introduction and Distributional Implications Part II: Financialization and the US Economy Part III: Financialization and the International Monetary System Part IV: Policy Perspectives.
983 citations
TL;DR: In this article, the link between accumulation and financialization is tested econometrically by means of a time series analysis of aggregate business investment for USA, UK, France, and Germany.
Abstract: Over the past decades financial investment of non-financial businesses has been rising and accumulation of capital goods has been declining. The first part of the paper offers a novel theory to explain this phenomenon. Financialization, the shareholder revolution and the development of a market for corporate control have shifted power to shareholders and thus changed management priorities, leading to a reduction in the desired growth rate. In the second part the link between accumulation and financialization is tested econometrically by means of a time series analysis of aggregate business investment for USA, UK, France, and Germany. Extensive test of robustness are performed. For the first three countries evidence that confirms the negative effect of financialization on accumulation is found. (author's abstract)
894 citations
TL;DR: In this paper, the authors evaluate the insights of more than a decade of scholarship on financialization and argue that a deeper understanding of financialization will lead to a better understanding of organized interests, the politics of the welfare state, and processes of institutional change.
Abstract: Since the early 2000s, scholars from a variety of disciplines have used the concept of financialization to describe a host of structural changes in the advanced political economies. Studies of financialization interrogate how an increasingly autonomous realm of global finance has altered the underlying logics of the industrial economy and the inner workings of democratic society. This paper evaluates the insights of more than a decade of scholarship on financialization. Three approaches will be discussed: the emergence of a new regime of accumulation, the ascendency of the shareholder value orientation and the financialization of everyday life. It is argued that a deeper understanding of financialization will lead to a better understanding of organized interests, the politics of the welfare state, and processes of institutional change.
893 citations