The U.S. spends 8 percent of its GDP on finance — twice the amount it did 40 years ago, according to a recent post by economist Brad DeLong. That figure set off a flurry of commentary with some asking how “the financialization of the world” came to be and others attempting to answer that very question.
This week, we speak with Satyajit Das about the prominent role played by finance in the economy, markets, and monetary policy. A former banker, trader, and corporate treasurer, Das is well-placed to walk us through the development of global financialization and its pitfalls - including the world's outsized reliance on debt-fuelled growth.
Along the way we talk banker bonuses, negative interest rates, home safes, and (of course!) alien invasions.