Financialization and Inequalities in Income and Wealth

7 Pages Posted: 23 May 2018

See all articles by Valeed Ahmad Ansari

Valeed Ahmad Ansari

Aligarh Muslim University (AMU) - Department of Business Administration

Date Written: January 1, 2018

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

Ansari, Valeed Ahmad, Financialization and Inequalities in Income and Wealth (January 1, 2018). Journal of King Abdulaziz University: Islamic Economics, Vol. 31, No. 1, January 2018. Available at SSRN: https://ssrn.com/abstract=3183584

Valeed Ahmad Ansari (Contact Author)

Aligarh Muslim University (AMU) - Department of Business Administration ( email )

Aligarh
India

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