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Financialization and Inequalities in Income and Wealth طغيان النشاط المالي وعدم المساواة في الدخل والثروة

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  • Valeed Ahmad Ansari

    (Aligarh Muslim University, India)

Abstract

The inequality issue has become a central concern for the majority of economists. Financialization is, among others, a major cause of inequalities in income and wealth. This paper examines opinions of some noted scholars on this issue. In reality, the financial sector has moved away from its basic function of allocating capital to productive uses, to those activities which do not create wealth rather, they transfer it from others to finance manipulators. Financialization leads to the development of new financial products that are several layers away from the real economy. The oversized financial sector has strayed away from its essential function. Several empirical studies document that “too much finance” may hamper growth, create distortions, and contribute to income inequality.

Suggested Citation

  • Valeed Ahmad Ansari, 2018. "Financialization and Inequalities in Income and Wealth طغيان النشاط المالي وعدم المساواة في الدخل والثروة," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 31(1), pages 129-135, January.
    • Handle: RePEc:abd:kauiea:v:31:y:2018:i:1:no:8:p:129-135
    DOI: 10.4197/Islec.31-1.8
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    References listed on IDEAS

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