Global Financial Markets, Predominance of Monetary Policy and the Deepening of Financialization

Abstract

This article analyzes the evolution of financialization at a global level and the corporate and public policies employed over the past decades that have guided its advance. More specifically, this article focuses on the evolution of productive investment in the era of financialization, and in recent years in particular. As will be argued, the predominance of monetary policy as the public policy of choice in recent decades has greatly reduced the capacity of the State to lead economies on a path of development.

Keywords:

• Financialization
• investment
• monetary policy

JEL CLASSIFICATIONS::

• E52
• B5
• D25
• F65

Acknowledgments

I thank the two anonymous referees for their very helpful comments. All remaining errors are my own.

Additional information

Notes on contributors

Gregorio Vidal

Gregorio Vidal is Professor at the Department of Economics, Universidad Autónoma Metropolitana – Iztapalapa, Mexico.