On the Logic of Goods Financialization

ZHANG Chengsi

Journal of Renmin University of China ›› 2021, Vol. 35 ›› Issue (4) : 74-85.

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主管:教育部
主办:中国人民大学
ISSN 1000-5420  CN 11-1476/C
PDF(9374 KB)
Journal of Renmin University of China ›› 2021, Vol. 35 ›› Issue (4) : 74-85.

On the Logic of Goods Financialization

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Abstract

The financialization of goods tends to happen when there is abundant social capital in an underdeveloped financial marketUnder this background,some owners of capital would invest or speculate in the goods market instead of the financial marketThe logic of goods financialization can be described as the following: The scale effect of the cost of circulation causes the agglomeration of capital in the circulation sectorThis would lead to the increase of dealers' bargaining power as well as the prices of goodsOn this basis,the more available such value as cultural value of goods that is difficult to be accurately priced become,the more possibly the financialization of this goods will happenIn an underdeveloped financial market,the surplus of capital from private sector can also prompt the occurrence of such financializationThe demand of asset allocation for the purpose of value preservation or preventing value from losing in inflation by investing certain goods and the demand for investment and speculation in anticipating the rise of goods prices may cause the actual rise of its pricesThe rise of goods price and the increase of trade may accelerate the flow of goods, and,consequently,this will lead to more speculation and bigger chance of financializing this goods

Key words

Financialization of goods / Inflation / Investment / Speculation

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ZHANG Chengsi. On the Logic of Goods Financialization[J]. Journal of Renmin University of China, 2021, 35(4): 74-85
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