Article Title: Introduction to Financialization Subject: - TopicsExpress



          

Article Title: Introduction to Financialization Subject: Financialization Financialization is a term sometimes used in discussions of financial capitalism which developed over recent decades, in which financial leverage tended to override capital (equity) and financial markets tended to dominate over the traditional industrial economy and agricultural economics. Financialization is a term that describes an economic system or process that attempts to reduce all value that is exchanged (whether tangible, intangible, future or present promises, etc.) into a financial instrument. The original intent of Financialization is to be able to reduce any work-product or service to an exchangeable financial instrument, like currency, and thus make it easier for people to trade these financial instruments. Workers, through a financial instrument such as a mortgage, could trade their promise of future work/wages for a home. Financialization of risk-sharing makes all insurance possible. The Financialization of a governments promises (e.g. U.S. Government bonds) makes all deficit spending possible. Financialization also makes economic rents possible.
Posted on: Mon, 19 Jan 2015 11:21:59 +0000

Trending Topics



Recently Viewed Topics




© 2015