Decoupling theory

The view that the financial sector is increasingly developing independently of the real economy and is becoming independent, as it were; often judged as an aberrant development of an economic sector, as a typical undesirable development (aberration). – However, it is difficult to say where the “right” balance lies between the two sectors. – The introduction of new financial instruments has undoubtedly led to a redistribution of risks and thus to an expansion of access to loans. – Falling transaction costs, deregulation and internationalization of the sector, the emergence of specialized submarkets combined with constantly improving communication possibilities are automatically leading to an increase and deepening of supply and demand for financial services. – This undoubtedly benefits all branches of the real economy in the end. – The fact that this process is also associated with dangers, as was shown occasionally by the subprime crisis in the case of securitized securities, and that the development sometimes confronts monetary policy with new tasks, should not be a reason to turn back the wheel of financial history. – See dematerialization, globalization, financial, credit substitution.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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