Financialization: Economic and Social Impacts

Finance has expanded significantly since the 1970s, affecting all aspects of economic life. It has the power to bring down banks, currencies, and governments, leading to debt and hardship. Malcolm Sawyer's book provides a survey of the impact of financialization on economic growth and society and considers the prospects for definancialization and a less pervasive future role.

Format: Paperback / softback
Length: 240 pages
Publication date: 25 August 2022
Publisher: Agenda Publishing

Finance has played a crucial role in the capitalist economy for decades, but its scope has expanded significantly since the 1970s. It now encompasses various aspects of economic life, from individual activities to corporate behavior and societal decisions. The power and vulnerability of the financial sector are evident in the devastating consequences when things go wrong, leading to bank failures, currency crises, and government collapses.

In his book, "The Impact of Financialization on Economic Growth and Society," Malcolm Sawyer provides a comprehensive examination of the effects of financialization on economic development and society. Drawing on a wide range of research, Sawyer offers insights into current thinking about the role of finance in the broader macroeconomy and explores the possibilities for de-financialization and a future where finance plays a less dominant role.

One of the key themes of the book is the increasing interconnectedness of the global financial system. Sawyer argues that financialization has led to a greater integration of financial markets, which has facilitated the flow of capital across borders and increased the efficiency of financial transactions. However, this interconnectedness has also created new risks and vulnerabilities, particularly in the wake of the global financial crisis of 2008.

Another important aspect of Sawyer's book is the impact of financialization on economic growth. He argues that the increasing reliance on financial markets and financial instruments has led to a shift in the focus of economic activity away from productive sectors such as manufacturing and agriculture and towards financial services. This has contributed to the growth of the financial sector, but it has also had negative consequences for economic development, such as reduced job creation and increased inequality.

Sawyer also examines the social consequences of financialization. He argues that the increasing importance of finance has led to a concentration of wealth and power in the hands of a small elite, which has had negative effects on social mobility and social cohesion. This has contributed to the growing gap between the rich and the poor and has undermined the democratic legitimacy of financial institutions.

In conclusion, "The Impact of Financialization on Economic Growth and Society" is a valuable contribution to the literature on finance and economics. Sawyer provides a comprehensive survey of the effects of financialization on economic growth and society, and his insights into current thinking about the role of finance in the broader macroeconomy are insightful and thought-provoking. The book is a must-read for anyone interested in understanding the complex relationship between finance and economic development.

Dimension: 240 x 170 (mm)
ISBN-13: 9781788212304