Financialization and Macroeconomics

Introduction

DOI: 10.4324/9781003223221-1

During the last three decades, the world economy has undergone profound changes leading many heterodox economists to speak of a new phase of capitalist development, often named neoliberal era, characterised by a diminishing role for governments, financial deregulation and liberalisation, globalisation and financialisation. Moreover, in most advanced countries, the “rentier share” – i.e. the share of national income accruing to financial institutions and holders of financial wealth – has seen steady increase over the same period.

Of course, all these different phenomena are probably closely interconnected and none could exist without the others. However, in some respects, financialisation has frequently ...