
doi: 10.2139/ssrn.3734917
This paper examines the interplay between one hemisphere of the financial economy that contributes to financing real-economic output, while the other deals self-referentially with capital management and financial asset management, in short, GDP finance and non-GDP finance. Since around 1980, there has been a significant GDP-disproportionate expansion in non-GDP finances, based on the credit-borne expan¬sion of the money supply by banks, central banks and shadow banks, and resulting in problems of instabi¬lity and new disparities that cannot to be remedied by conventional measures alone.
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