Financialization’s core is markets displacing institutions via information.

Evidence

In the final section we argue that the fundamental feature of financialization is a shift from financial institutions to financial markets. This shift accounts for the unbalancing effect of financialization on different varieties of capitalism. We speculate that underlying these diverse outcomes is a similar dynamic: Information enables markets that undermine institutions. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 18

Categorization

• XREF: The ‘information enables markets that undermine institutions’ thesis parallels the reader’s prior note on institutional theory and market logics. — connects to: Financialization shifts capital intermediation from institutions to markets. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 5; Financialization ultimately represents markets displacing social institutions as society’s organizing principle. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 98; The 2008 subprime crisis confirmed central predictions of financialization studies. — Natascha van der Zwan, Making Sense of Financialization, 113
• SEED: This thesis could anchor an essay on how information technology is the hidden driver of institutional erosion across domains.

Related

• Financialization shifts capital intermediation from institutions to markets. (similarity 0.90)
• Financialization ultimately represents markets displacing social institutions as society’s organizing principle. (similarity 0.89)
• The 2008 subprime crisis confirmed central predictions of financialization studies. (similarity 0.83)
• Financial globalization’s effects are mediated by preexisting national institutions. (similarity 0.80)
• Financialization resulted from deliberate deregulatory political choices, not market forces. (similarity 0.80)
• Financialization has competing explanations from three distinct scholarly disciplines. (similarity 0.79)
• Financialization accelerated through 1970s-80s deregulation and state support (similarity 0.79)
• Financialization lacks rigorous empirical evidence defining its timing and magnitude (similarity 0.79)
• Solutions to financialization require abolishing capitalism, not just re-regulating finance (similarity 0.79)
• Market-centered finance dissolved the cohesive corporate elite class. (similarity 0.78)
• Financialization scholarship spans three approaches with distinct analytic foci. (similarity 0.78)
• Financialization is integral to capitalism, not a product of deregulatory excess (similarity 0.78)
• Financialization does not yield uniform convergence across national contexts. (similarity 0.78)
• Financialization operates without centralized direction yet reproduces itself through transformed agency (similarity 0.78)

Broader Connections

• Financialization ultimately represents markets displacing social institutions as society’s organizing principle. #corroborates (1.00) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 98