Why Do Some Scholars Think That Financialization Has Negative Long-Term

question 17

Short Answer

Why do some scholars think that financialization has negative long-term effects on rates of innovation?

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Definitions:

Swap Contract

A financial agreement where two parties exchange liabilities or cash flows from two different financial instruments.

Specified Cash Flows

Cash flows that are detailed or determined for specific activities, projects, or investments.

Exchange

A marketplace where securities, commodities, derivatives, and other financial instruments are traded.

Future

In finance, a future is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used as a financial instrument for hedging or speculation.