Journal Article

The financialization of the American economy

Greta R. Krippner

in Socio-Economic Review

Published on behalf of Society for the Advancement of Socio-Economics

Volume 3, issue 2, pages 173-208
Published in print May 2005 | ISSN: 1475-1461
Published online May 2005 | e-ISSN: 1475-147X | DOI:
The financialization of the American economy

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This paper presents systematic empirical evidence for the financialization of the US economy in the post-1970s period. While numerous researchers have noted the increasing salience of finance, there have been few systematic attempts to consider what this shift means for the nature of the economy, considered broadly. In large part, this omission reflects the considerable methodological difficulties associated with using national economic data to assess the rise of finance as a macro-level phenomenon shaping patterns of accumulation in the US economy. The paper develops two discrete measures of financialization and applies these measures to postwar US economic data in order to determine if, and to what extent, the US economy is becoming financialized. The paper concludes by considering some of the implications of financialization for two areas of ongoing debate in the social sciences: (1) the question of who controls the modern corporation; and (2) the controversy surrounding the extent to which globalization has eroded the autonomy of the state.

Keywords: Economic sociology; financialization; economic change; macro-economic data and indicators—United States; JEL classification: G3 Corporate finance and governance; N220 Economic history, financial markets and institutions; L2 Industrial organization: firm objectives, organization and behaviour

Journal Article.  0 words. 

Subjects: Moral Philosophy ; Corporate Social Responsibility ; Welfare Economics ; Political Economy ; Economic Sociology

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