Financial Capital Overaccumulation

Hsu, Sara (2012): Financial Capital Overaccumulation.

Abstract

Overaccumulation of financial capital at the expense of the real sector resulted in falling wages as well as in the most recent global financial crisis. This is a topic of increasing interest, as the idea that some developed economies have reached a stage of overfinancialization has gained some following. In this paper, we lay out a model of overaccumulation, which can be used as a constraint on any growth model.

• Item Type: MPRA Paper
• Language: English
• Keywords: finance; speculation; overaccumulation; accumulation; growth model; growth
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General; G - Financial Economics > G0 - General > G01 - Financial Crises

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