Financialization

Financial-market capitalism (also: financial capitalism ) is a social science concept, featuring a newer type of capitalism, in which the financial markets exert a growing influence on the real economy. The coined by sociologist Paul Windolf term has been taken up in particular by Christoph German man and Klaus Dörre.

Terms

Financial-market capitalism

The financial-market capitalism solves the traditional Manager from capitalism (see James Burnham ). It is characterized by a specific configuration of economic institutions. These institutions include: the equity markets, investment funds ( owner), analysts and credit rating agencies ( boundary roles ) as well as transfer mechanisms (eg hostile takeovers ).

The center of the control in the financial-market capitalism are the equity markets. They offer a special opportunity structure for opportunism ( moral hazard), because they only feign a transformation of uncertainty into risk. For Windolf are the " new owner" means the investment funds that already have the majority of the large corporations in the United States. Subject to the operational logic of the financial markets, they force governments and companies to short-term strategies to maximize profits and increase returns. Analysts and rating agencies occupy in this system boundary important roles that transform uncertainty into risk. As specific transfer mechanisms for hostile takeovers Windolf identified the market for corporate control, stock options and shareholder value.

Unlike Rudolf Hilferding's " finance capital ", the force exerted by financial markets control is abstract, anonymous and objective, that is, it does not appear as domination of a particular class or group and not as personal, but by anonymous and global market forces mediated dependence.

Financialization

Financialization is a loan translation from English ( financialisation ).

Under " financialization " is Luiz Carlos Bresser - Pereira of a distorted institutional arrangement understood that creates the " artificial" way financial wealth, ie without being connected to real economic production processes. Linked is thus on the well known from the classical economics distinction between productive and unproductive labor.

Gerald E. Epstein summarizes the concept a little further and summarizes including the increasing importance of financial motives of financial markets and financial institutions and their stakeholders for the national and international economy.

Greta R. Krippner has the financialization of the U.S. economy empirically investigated and developed special measuring equipment.

Industrial sociologists in Germany use financialization as a process -terminus, which brings the internal control ( corporate governance ) of companies on the capital market generated sizes expressed.