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Financialisation reinforced: the dual legacy of the covid pandemic

Author

Listed:
  • Photis Lysandrou

    (City University of London)

  • Taimaz Ranjbaran

    (City University of London)

Abstract

This paper examines the impact of the covid pandemic on the financialisation process, here viewed as the growing domination of the world’s bond and equity markets over the world’s product markets. Two major arguments are advanced. The first is that the pandemic has reinforced the functionality of financial market scale, which is that its continuing growth signifies nothing other than that government and corporate organisations are colonising the future to cope with the rising financial pressures of the present. The second argument is that the pandemic has also accentuated one of the more notable dysfunctional aspects of the continuing growth of financial market scale, which is its enforcement of a core-periphery divide between the advanced and emerging market economies that occupy the global financial system. The paper concludes with some policy implications of the analysis that includes the call for a global wealth tax.

Suggested Citation

  • Photis Lysandrou & Taimaz Ranjbaran, 2021. "Financialisation reinforced: the dual legacy of the covid pandemic," Review of Evolutionary Political Economy, Springer, vol. 2(3), pages 589-606, December.
    • Handle: RePEc:spr:revepe:v:2:y:2021:i:3:d:10.1007_s43253-021-00053-4
    DOI: 10.1007/s43253-021-00053-4
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    References listed on IDEAS

    as
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    3. Photis Lysandrou, 2016. "The colonization of the future: An alternative view of financialization and its portents," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 39(4), pages 444-472, October.
    4. Gerald Epstein & James Crotty, 2013. "How big is too big? On the social efficiency of the financial sector in the United States," Chapters, in: Jeannette Wicks-Lim & Robert Pollin (ed.), Capitalism on Trial, chapter 20, Edward Elgar Publishing.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financialisation; Covid pandemic; Colonisation of the future; Core-periphery divide; Global wealth tax;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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