Financialization: The AIDS of economic system
Please cite the paper as:
Juan Pablo Durán Ortiz, (2014), Financialization: The AIDS of economic system, World Economics Association (WEA) Conferences, No. 2 2014, Greece and Austerity Policies: Where Next for its Economy and Society?, 20th October to 21st December 2014
Epistemologically the economic system can be understood through two approaches: biology and physics. The biological approach has been used to illustrate financialization, which is the process of reorienting all the economic resources from real production to the speculative market. This approach compares the economic system to the system of the human body in order to study the financialization process and its effects in the economic system. Specifically, this paper demonstrates that the financialization process develops on the economy as AIDS spreads in the human body. The financialization process has some special characteristics that make it very similar to AIDS, not only because of how it grows inside the system, but also because of the consequences that these processes have in the system. The paper concludes by proposing actions that can be taking to minimize risks of crises in the economic system taking into account their real causes.