Financialization

Increased use of finance and financial instruments at the expense of production processes

Financialization (or financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to the present, in which debt-to-equity ratios increased and financial services accounted for an increasing share of national income relative to other sectors. Financialization describes an economic process by which exchange is facilitated through the intermediation of financial instruments.

Nº Q607865 ★

Common · Knowledge

Financialization

Increased use of finance and financial instruments at the expense of production processes

Financialization (or financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to the present, in which debt-to-equity ratios increased and financial services accounted for an increasing share of national income relative to other sectors. Financialization describes an economic process by which exchange is facilitated through the intermediation of financial instruments.

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From Wikipedia

Financialization (or financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to the present, in which debt-to-equity ratios increased and financial services accounted for an increasing share of national income relative to other sectors. Financialization describes an economic process by which exchange is facilitated through the intermediation of financial instruments. Financialization may permit real goods, services, and risks to be readily exchangeable for currency and thus make it easier for people to rationalize their assets and income flows. Financialization is tied to the transition from an industrial economy to a service economy in that financial services belong to the tertiary sector of the economy.

Text: Wikipédia, CC BY-SA 4.0. · Image: --Alex1011 (talk) 09:06, 7 November 2008 (UTC) (CC BY-SA 4.0) ·

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