Financialization accelerated through 1970s-80s deregulation and state support

Evidence

The growing influence of financial markets, firms, and instruments. Though there is a long history of finance, credit, and debt, financialization is typically thought of as a set of processes that began accelerating in the 1970s and 1980s, leading to the contemporary moment in which a global network of financial institutions have achieved imposing scale and power. Key components of financialization include financial instruments (e.g., stock markets, mutual funds, dividends, stock buybacks, derivatives), financial strategies (e.g., asset management, private equity, hedge funds, venture capital), and state support (e.g., central banks, financial deregulation, the World Bank, the International Monetary Fund). — Andrew deWaard, Derivative Media, 488

Categorization

• DEFINE: Defines the master concept financialization as three interacting layers — instruments, strategies, and state support — which frames the whole book.
• XREF: connects to: Deregulation in the 1980s pushed corporations to bypass banks entirely — Mark Blyth, Austerity: The History of a Dangerous…, 78; 1970s crises moved business elites to prioritize capital liquidity over employment stability — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 39; Stagnating growth plus deregulation pushed firms from production into financial investment — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 41 (+14 more)