Financialization and Finance-Driven Capitalism

Mutlugün B.

in: Capitalism at a Crossroads A new Reset?, Ali Arı, Editor, Springer, London/Berlin , Berlin, pp.81-104, 2023

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2023
  • Publisher: Springer, London/Berlin 
  • City: Berlin
  • Page Numbers: pp.81-104
  • Editors: Ali Arı, Editor
  • Istanbul University Affiliated: Yes


This chapter discusses the discourses and consequences of finance-driven capitalism from a political economy approach by employing an analytical eclecticism. For this aim, we bring together diverse approaches to frame the understanding of financialization and how it influences the behavior of different actors. First, we critically assess the financialization theories from various historical perspectives. Then, we examine periodization issues of financialization by looking at historical patterns to uncover how different trajectories of the role of finance can offer insights in answering whether financialization constitutes a shift toward a new paradigm in capitalist accumulation, or a tenacious regularity of economic bubbling up. We claim that despite institutional and formal differences, financialization has been unfolding in the centuries-long history of finance. Its pace can be moderated or accelerated by particular policies, institutional changes, and the state of the economy, similar to those implemented during the Golden Age of capitalism or repeal of the Glass-Steagal act. Financialization is a global phenomenon and situated within unproductive activities by creating a rent-seeking society and reflects actual workings of modern capitalism rather than constituting a new epoch in capitalism.