financialización

Financialization refers to the increasing importance of financial markets, financial motives, financial institutions, and financial elites in the operation of the economy of a nation and the economy of the world. This process involves a shift in the dominance of economic activity from production to finance, with financial activities becoming a larger and more influential part of the economy.

Key characteristics of financialization include the growth of financial assets relative to the real economy, increased household debt, and the rise of financial engineering. It can also involve the increased influence of financial actors and perspectives in corporate governance and public policy. Proponents argue that financialization can lead to greater efficiency, innovation, and access to capital. However, critics point to potential negative consequences such as increased economic inequality, financial instability, and a focus on short-term gains over long-term investment and social well-being. The concept is often associated with the globalization of finance and the deregulation of financial markets.