In the wake of World War II, much of the western world, particularly the United States, adopted a new form of capitalism called “managerial welfare-state capitalism.”
The system by design constrained financial institutions with significant social welfare reforms and large oligopolistic corporations that financed investment primarily out of retained earnings. Private sector debt was small, but government debt left over from financing the War was large, providing safe assets for households, firms, and banks. The structure of this system was financially robust and unlikely to generate a deep recession. However, the constraints within the system didn’t hold.
The relative stability of the first few decades after WWII encouraged ever-greater risk-taking, and over time the financial system was transformed into our modern overly financialized economy. Today, the dominant financial players are “managed money”—lightly regulated “shadow banks” like pension funds, hedge funds, sovereign wealth funds, and university endowments—with huge pools of capital in search of the highest returns. In turn, innovations by financial engineers have encouraged the growth of private debt relative to income and the increased reliance on volatile short-term finance and massive uses of leverage.
What are the implications of this financialization on the modern global economy? According to Adair Lord Turner, a Senior Fellow at the Institute for New Economic Thinking and a former head of the United Kingdom’s Financial Services Authority, it means that finance has become central to the daily operations of the economic system. More precisely, the private nonfinancial sectors of the economy have become more dependent on the smooth functioning of the financial sector in order to maintain the liquidity and solvency of their balance sheets and to improve and maintain their economic welfare. For example, households have increased their use of debt to fund education, healthcare, housing, transportation, and leisure. And at the same time, they have become more dependent on interest, dividends, and capital gains as a means to maintain and improve their standard of living.
Another major consequence of financialized economies is that they typically generate repeated financial bubbles and major debt overhangs, the aftermath of which tends to exacerbate inequality and retard economic growth. Booms turn to busts, distressed sellers sell their assets to the beneficiaries of the previous bubble, and income inequality expands.
In the view of Lord Turner, we have yet to come up with a sufficiently robust policy response to deal with the consequences of our new “money manager capitalism.” The result likely will be years more of economic stagnation and deteriorating living standards for many people around the world.
online courses concordia Adair Turner: The Consequences of Money-Manager Capitalism | |
| 116 Likes | 116 Dislikes |
| 12,580 views views | 64.5K followers |
| Film & Animation | Upload TimePublished on 24 Oct 2014 |
Related keywords
banking holidays,economista nielsen,social sciences and humanities,credit industry ombudsman limited,non profits in san diego,american bully,nonprofits in chicago,society for creative anachronism,inequality synonym,banking and insurance,social sciences uci,curriculum synonym,economics major reddit,banking on bitcoin,united states treasury,education netflix,nonprofits in the bronx,curriculum vitae,modern economics as a field of study is usually thought to have begun with,economy,financial services industry jobs,economics podcast,american horror story,educational policy analysis and strategic research,curriculum based measurement,economics major rutgers,curriculum writing jobs,european countries,inequality word problems,non profits in dallas,european wax center prices,inequality enduring issue,financial services industry australia,financial services industry statistics,american staff,online courses cambridge,economic growth importance,economics major average salary,american sniper,education system in turkey,american vintage,americano,online courses stanford,society lounge,online courses quebec,economic growth tagalog,economista de pablo,financial services industry in india,nonprofits in nyc,social sciences and humanities research council,united states marine corps,financial services industry in india pdf,economista josé luis espert,inetbet,european capitals,economics is best defined as the study of,economics for dummies,credit industry topics,american airlines,economic growth meaning,society season 2,social sciences major,society of american archivists,economics textbook,credit industry analysis,non profits in dc,agricultural economics field of study,social sciences uchicago,nonprofits in brooklyn,american dad,economic growth in the philippines,social sciences vs humanities,economista cordobes,nonprofits in newark nj,society cast,curriculum development jobs,nonprofits in new york,economic growth rate,nonprofits on long island,inet_e_download_failure,economic growth 2019,banking jobs,financial services industry analysis,inequality calculator,economic growth and development,european tour,non profits in atlanta,european vacation,economistas argentinos,credit industry in india,united states time zones,credit industry trends,credit industry news,financial services industry uk,financial services industry south africa,credit industry products,economic zone,american history x,economics major uf,american tourister,banking 365,economics major usyd,education film,credit industry updates,european flags,curriculum map,society netflix,united states constitution,netviewer,nonprofits traducción,american gangster,social sciences list,economics jobs,econometrics,educational studies,education level,inetaddress,financial services industry trends,inetcpl.cpl,finance charge,nonprofits in nj,credit sesame,non profits in nashville,curriculum corner,economics major stanford,financial services industry definition,american gods,field of study related to economics,online courses websites,economic growth definition economics,economics major uchicago,inequality definition,credit union 1,society definition,united states navy,nonprofits nyc,economista distefano,non profits in denver,credit repair,online courses university,society garlic,inequality solver,economy of bangladesh,educational sciences theory & practice,economics major ranking,economic growth essay,banking services,financial services industry trends in south africa,credit card numbers,curriculum vitae template,creditwise,united states of america map,united states country code,finance news,curriculum associates,united states presidents,economic growth in the philippines essay,online courses platform,europe heat wave,united states flag,online courses club,inequality notation,education çeviri,united states map,economistas liberales,banking technology,economics in one lesson,social sciences courses,nonprofits near me,finance department,economista kirchnerista,economics 101,curriculum writing,inequality graph,american psycho,american nightmare 2,nonprofits hiring nyc,economics definition,american nightmare 3,american nightmare 4,economista,europe weather,financial services industry in malaysia,online courses oxford,economics major fsu,finance a car,credit industry meaning,non-profits or nonprofits,economista de tn,credit card,inet_addr,economics major monash,society hill,economics major yale,society for neuroscience,european wax center,social sciences ucsd,inequality problems,economics field of study,european starling,financial services industry overview,nonprofits in houston,credit industry,inequality math,society of illustrators,econate plus,economista fallecido,curriculum definition,economistas de alberto fernandez,economist,society burger,credit industry qualifications,economics is the study of,economics major unc,united states postal service jobs,credit industry regulated by,curriculum plural,credit industry awards,european hornet,economic growth and development pdf,banking definition,inequality rules,social sciences building,inetpub,non profits organizations,https://www.creditkarma.com/,nonprofits in jersey city,inequality grapher,education icon,inequality symbols,education and information technologies,finance companies,economics major salary,economics major uva,financial services industry,non profits in austin,economista c5n,economic growth under aquino administration,banking careers,history of economics as a field of study,economistas liberales argentinos,united states postal service,non profits in philadelphia,banking with citibank,society club,economy of india,online courses canada,society for human resource management,branches of economics as a field of study,european wax center near me,labour economics as an important field of study,economista de macri,nonprofits jobs,economics major uoft,curriculum vitae vs resume,american express,economics field study ucsc,nonprofits to work for,finance manager salary,economics class,finance of america,http://finance.google.com,inetcache,inequality meaning,banking news,credit union one,online courses mit,inet_e_resource_not_found,online courses data science,inequality equations,inetico,society6,financial services industry trends 2019,financial services industry trends 2018,economic growth example,economics major,economics is an ever-expanding field of study,economistas clasicos,european destinations,education journal,financial services industry outlook,finance internships,credit industry jobs,inequality definition math,european cruises,society of actuaries,non profits hiring,social sciences 1 ucsc,credit card offers,educational research,curriculum development,finance definition,credit industry overview,financial services industry legislation and statutory requirements,economic growth vs economic development,seattle nonprofits,social sciences careers,society of women engineers,credit score,american pie,inet_pton,online courses uk,nonprofits insurance alliance group,economista milei,economic growth rate formula,finance major,econo bus,ineta stasiulyte,credit union,europe map,social sciences jobs,nonprofits,credit union near me,economic order quantity,economic growth synonym,nonprofits hiring,economy of pakistan,economic growth meaning in tagalog,banking apps,economics major requirements,curriculum template,inetmgr,finance google,credit bureau,online courses harvard,inequality for all,finance jobs,united states naval academy,european union,economics major uwa,credit one,economic growth theories,social sciences degree,finance manager,united states of tara,credit card generator,non profits in boston,economics quizlet,online courses.ooo,credit industry ombudsman,educational ne demek,credit karma,banking terms,educational psychology,banking jobs nyc,economista keynes,inet_aton,education logo,economics degree,banking regulations,curriculum and instruction,economics major internships,nonprofits in connecticut,credit industry forum,credit industry code of conduct,united states population,nonprofits based in nyc,inetpub folder,european river cruises,banking industry,economic growth,nonprofits nyc jobs,inequality signs,economic system,online courses with certificates,educational researcher,educational studies in mathematics,credit acceptance,finance salary,social sciences examples,social sciences classes,education ne demek,economic times,curriculum design,credit score range,society6 coupon,united states passport,economista mediatico,economics and other field of study,united states air force,credit industry in south africa,american nightmare,finance calculator,nonprofits in new jersey,economics times,inet_e_security_problem,non profits in los angeles,online courses uottawa,curriculum vitae definition,nonprofits in harlem,economic,american beauty,economics degree jobs,educational research and reviews,financial services industry growth rate,banking online,banking with citi,economic development,social sciences and history clep,finance yahoo,social sciences definition,united states postal service tracking,economics salary,unethical,economics news,society movie,european shoe size,nonprofits that pay well,inetd,home economics as a field of study,economics book,financial services industry news,united states army,finance jobs nyc,economics major unimelb,economics as an academic field of study,united states soccer,credit union of texas,inequality word problems worksheet,economics major ucla,curriculum map template,european walking shoes,online courses free,social sciences journal,curriculum meaning,finance minister of india,economistas famosos,social sciences citation index,economies of scale,economic growth pdf,credit industry events,economic growth of japan,credit report,inequality examples,online courses english,inet_ntoa,economic relations division,society synonym,economics major jobs,economics,finance degree,european map,banking jobs near me,banking hours,education first,inet_ntop,online courses mcgill,
Không có nhận xét nào:
Đăng nhận xét