Financialization

Financialization is the process by which financial markets, instruments, and motives gain increasing influence over economic activity. The term is sometimes used to describe the development of financial capitalism from 1980 to the present, a period during which debt-to-equity ratios increased and financial services grew to account for a larger share of national income relative to other sectors. It is characterized by the expansion of leverage, derivatives, and speculative capital allocation relative to productive investment. From a Bitcoin perspective, financialization can blur the boundary between sound monetary assets and financial claims built upon them.

Related Intelligence

This term is explored in depth in SBI-004.