AN ESSAY ON BELLAMY FOSTER’S IDEA OF FINANCIALIZATION: ASSESSING THE CREDIBILITY AND PROSPECTS IN FINANCIAL REGULATORY SYSTEM
Economic liberalization and technological advancement have brought the world closer than ever before. The lasting global imbalances, the recent subprime mortgage fallout, and the subsequent credit crunch in the United States (US) have rendered the global economic outlook more uncertain and precarious. The excessive domination of finance over the production has led the world economy to a volatile stage when it is thought of having a new financial structure. This essay discusses, in turn, Bellamy Foster’s idea of financialization and different perspectives thereof. It also analyses the associated implications of financialization on financial regulation. In fine, it discusses the necessity to bring about a financial reform and change in the regulatory system to prevent the recurrence of ‘boom and bust’.