Financial Markets and Economic Development

Abdorasoul Sadeghi, Hela Nammouri () and Seyed Komail Tayebi ()
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Hela Nammouri: UCLy (Lyon Catholic University), ESDES
Seyed Komail Tayebi: University of Isfahan, Department of Economics

Chapter 2 in Financial Markets, Speculation, and Development, 2026, pp 25-50 from Springer

Abstract: Abstract Consistent access to financial resources is essential for achieving adequate investment and economic growth. Therefore, the flow of money across various markets finds a key place. When this money is absorbed by financial intermediaries and bond markets, it can support investments in research and development (R&D) and other productive projects. Investing in the crypto market with a medium- to long-term perspective, rather than for short-term speculative gains, can contribute to the reduction of the role of various intermediaries in the economy. This can accelerate the investment process, reduce costs, and save time. Similarly, long-term investments in the gold market can provide a stable store of value, especially during times of political and economic instability, reducing investment risk and increasing economic resilience. The environmental impact of gold and crypto mining, which threatens sustainable development, can be mitigated through technological innovations, regulations, and corporate social responsibility. Significant price volatility in financial markets may increase speculative motives, diverting the flow of money from long-term investments and development projects. This not only harms economic growth but can create inflationary pressures through artificial demand, reducing wage purchasing power and negatively affecting the motivation and productivity of human capital. In conclusion, the flow of money between financial markets can potentially influence the path toward sustainable development.

Date: 2026
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DOI: 10.1007/978-981-95-5895-7_2

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