The Hemispheres of Finance: GDP and Non-GDP Finance

29 Pages Posted: 9 Jan 2021

See all articles by Joseph Huber

Joseph Huber

Martin Luther University, Institute for Sociology

Date Written: November 21, 2020

Abstract

This paper examines the interplay between one hemisphere of the financial economy that contributes to financing real-economic output, while the other deals self-referentially with capital management and financial asset management, in short, GDP finance and non-GDP finance. Since around 1980, there has been a significant GDP-disproportionate expansion in non-GDP finances, based on the credit-borne expan¬sion of the money supply by banks, central banks and shadow banks, and resulting in problems of instabi¬lity and new disparities that cannot to be remedied by conventional measures alone.

Keywords: Financial economy, real economy, non-GDP finance, financialisation, money supply, monetary absorbency, financial carrying capacity

JEL Classification: E41, E44, E51, E58, G1, H6

Suggested Citation

Huber, Joseph, The Hemispheres of Finance: GDP and Non-GDP Finance (November 21, 2020). Available at SSRN: https://ssrn.com/abstract=3734917 or http://dx.doi.org/10.2139/ssrn.3734917

Joseph Huber (Contact Author)

Martin Luther University, Institute for Sociology ( email )

Martin Luther University, 06108 Halle, Germany
06108 Halle, D - 06108
Germany

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