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Neologism as Theoretical Innovation in Economics: The case of 'Financialisation'

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  • Jan Toporowski

    (Department of Economics, SOAS University of London, UK)

Abstract

The term 'financialisation' is a recognition that finance has come to play a key role on the modern capitalist economy. But users of the term do not agree on its meaning and recognition of the growing scale of finance has not brought about an increased understanding of financial processes. The paper examines the reasons for increased turnover in financial markets. The main themes in the literature on financialisation are examined and shown to lack a coherent account of financial processes that goes beyond the evidence of financial activity.

Suggested Citation

  • Jan Toporowski, 2012. "Neologism as Theoretical Innovation in Economics: The case of 'Financialisation'," Working Papers 171, Department of Economics, SOAS University of London, UK.
    • Handle: RePEc:soa:wpaper:171
    as

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    File URL: https://www.soas.ac.uk/sites/default/files/2022-10/economics-wp171.pdf
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    References listed on IDEAS

    as
    1. William Milberg & Deborah Winkler, 2010. "Financialisation and the dynamics of offshoring in the USA," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(2), pages 275-293, March.
    2. Till van Treeck, 2008. "The political economy debate on ‘financialisation’ – a macroeconomic perspective," IMK Working Paper 01-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Philip Arestis, 2002. "Financial crisis in Southeast Asia: dispelling illusion the Minskyan way," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(2), pages 237-260, March.
    4. Engelbert Stockhammer, 2004. "Financialisation and the slowdown of accumulation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(5), pages 719-741, September.
    5. Jan Toporowski & Jo Michell (ed.), 2012. "Handbook of Critical Issues in Finance," Books, Edward Elgar Publishing, number 14083.
    6. John Grahl, 2003. "Sand in the wheels or spanner in the works? The Tobin tax and global finance," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(4), pages 597-621, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. John Grahl, 2014. "The professors and the banks: US views on the subprime crisis," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(3), pages 383-400, May.
    2. Bruno Bonizzi, 2013. "Capital Flows to Emerging Markets: An alternative Theoretical Framework," Working Papers 186, Department of Economics, SOAS University of London, UK.

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    More about this item

    Keywords

    Financialisation; debt; credit;
    All these keywords.

    JEL classification:

    • B26 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Financial Economics
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

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