“To read or watch the news in today’s world is to be confronted with a wide array of stories about financial organization and financial institutions. News about central banks, interest rates, and debt appear to be everywhere.
The change is real and it’s a thing called “financialization.” It has arisen from of an economy that is increasingly focused on the financial sector at the expense of other areas of the economy. And it’s relatively new. Scholars have suggested many causes for financialization, but they often end up just blaming markets. In fact, the true cause is decades of government and central bank policy devoted to inflating asset prices in financial markets and bailing out the financial sector again and again.
Financialization” is a term used to describe the process by which financial institutions like banks and hedge funds have taken over economies and political systems in much of the world.