It refers to the increase in size and importance of a country’s financial sector relative to its overall economy.
It is a process whereby financial markets, financial institutions and financial elites gain greater influence over economic policy and economic outcomes.
It represents the shift from traditional industrial or productive activities (like manufacturing) to financial activities that involve the trading, management and speculation of financial assets.
The term also describes the increasing diversity of transactions and market players as well as their intersection with all parts of the economy and society.
It has occurred as countries shifted away from industrial capitalism.
It impacts both the macroeconomy and the microeconomy by changing how financial markets are structured and operated, and by influencing corporate behavior and economic policy.
Financialisation has also caused incomes to increase more in the financial sector than in other sectors of the economy.
Dear Student,
You have still not entered your mailing address. Please enter the address where all the study materials will be sent to you. (If applicable).
