Financialization and Inequalities in Income and Wealth طغيان النشاط المالي وعدم المساواة في الدخل والثروة

Valeed Ahmad Ansari ()
Additional contact information
Valeed Ahmad Ansari: Aligarh Muslim University, India

Journal of King Abdulaziz University: Islamic Economics, 2018, vol. 31, issue 1, 129-135

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.

Keywords: Financialization; Financial innovation; Growth of debt; Inequality; Poverty alleviation; Shareholder value maximization. (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://iei.kau.edu.sa/Files/121/Files/153869_31-01-08-ValeedAnsari-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:abd:kauiea:v:31:y:2018:i:1:no:8:p:129-135

DOI: 10.4197/Islec.31-1.8

Access Statistics for this article

More articles in Journal of King Abdulaziz University: Islamic Economics from King Abdulaziz University, Islamic Economics Institute. Contact information at EDIRC.
Bibliographic data for series maintained by King Abdulaziz University, Islamic Economics Institute. ().