Financialization is a political project tied to US hegemony, not a market efficiency outcome.

Evidence

By emphasizing the inherent instabilities of financialization, scholars of the new regime of accumulation have presented an important corrective to neoclassical assumptions about the efficiency of financial markets. Instead, they present financialization as a political project, one that is linked to the global spread of neoliberalism and the hegemony of the USA. Financial globalization offered a solution to America’s ‘crisis of hegemony’, brought on by the increased international competition confronting American firms and the loss of international prestige after the Vietnam War (Arrighi, 2003; Brenner, 2003). — Natascha van der Zwan, Making Sense of Financialization, 35

Categorization

  • XREF: Connects to the financialization debate literature and Arrighi/Brenner on US hegemony that a finance syllabus would already touch. — connects to: Financialization is integral to capitalism, not a product of deregulatory excess — Max Haiven, Cultures of Financialization, 34; Financialization involves new forms of state intervention, not state retreat. — Natascha van der Zwan, Making Sense of Financialization, 97; Financialization does not yield uniform convergence across national contexts. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 118 (+5 more)
  • DEFINE: Frames ‘financialization as a political project’ against neoclassical market-efficiency assumptions — a definitional stance distinguishing the political-economy approach.
  • corroborated: 2 independent passages support this claim — Natascha van der Zwan, Making Sense of Financialization, 35

Broader Connections