Financialization and the Economy
Routledge Critical Studies in Finance and Stability Series

There can be no doubt that the influence of the financial sphere has intensified rapidly in recent years, but there is much debate about the effect of that influence. The aftermath of the Financial Crisis has led to numerous discussions of the phenomenon of so-called financialization: the increasing impact of financial institutions on the activity of all business entities; emerging threats related with dynamically developing financial markets and the growing importance of financial themes. In light of these issues, which appear in all economies and touch all entities and every area of economic activity, there is a need for a summary and evaluation of the role of financialization in the world today.

This monograph presents the role of financialization in the modern world. It shows positive as well as negative effects of financialization on the stability of the whole economy, the functioning of different types of markets, activity of enterprises, state institutions and behaviours of households. Written by expert contributors, this book plays an important role in the debate concerning future directions of development of the financial sector and financial markets.

Financialization and the Economy is of great importance to those who study political economy, macroeconomics and banking.

Introduction

Agata Gemzik-Salwach and Krzysztof Opolski

Part I. Financialization: impact on the structure of economy and economic mechanisms

Chapter 1. Financialization and economic and social performance

Malcolm Sawyer

Chapter 2. Developing and emerging countries as finance providers: foreign exchange reserves and direct investment to the European Union

Jan Toporowski and Bruno Bonizzi

Chapter 3. Does sustainable global prosperity require global financial governance?

Gary A. Dymski

Chapter 4. The macroeconomic determinants of financial literacy in the European Union (on the example of numeracy skills)

Tomasz Potocki and Krzysztof Opolski

Part II. Financialization: impact on financial institutions and financial markets

Chapter 5. Bank failures and their implications for payment intermediation in conditions of financialization

Anna Iwańczuk-Kaliska

Chapter 6. The Franc Zone: can the operations account mechanism survive the push for financial deepening?

Christina Laskaridis

Chapter 7. Alternative investment funds under new financial and legislative reality and Russian specific

Oksana Martanus and Elena Merekina

Chapter 8. Financial risk and financialization

Andrzej Szopa

Part III.

Financialization: impact on society, households and companies

Chapter 9. Inequality in the twenty-first century – in need of a new theory?

Hanna K. Szymborska

Chapter 10. Financialization and household debt in Poland

Agata Gemzik-Salwach

Chapter 11. Financial exclusion and rationality of financial behaviour in view of financialization

Marta Maciejasz-Świątkiewicz

Chapter 12. The sources of corporate savings in the era of financialization

Anna Białek-Jaworska

Agata Gemzik-Salwach is the Deputy Dean of the Faculty of Administration and Social Sciences at the University of Information Technology and Management (UITM), for Economics, Finance and Accounting, Management Courses, Poland.

Krzysztof Opolski is Professor of Economics and Head of the Department of Banking, Finance and Accountancy at the University of Warsaw, Poland.