Financialization of theUSEconomy

Abstract

“Financialization” describes the increasing centrality of finance and financial considerations to the workings of the economy. This essay reviews the evidence that (i) creating shareholder value became a predominant concern for corporations since 1980, particularly in the United States, and (ii) the financial sector gained increasing prominence and power in the economy, with a number of consequences for the operations of corporations and the organization of society. Opportunities for future research are discussed including documenting the rise of securitization and its effect on the finance industry; understanding the emergence of new noncorporate forms of organization not tied to financial markets; finance and social movements; and finance and culture.