Public sector budget austerity is considered another aspect of financialization of markets due to the increased influence of financial institutions on public sector financial and nonfinancial decisions.

Public Sector Budget Austerity

Economic policy measures that involve significant reductions in government spending and benefits, often used to reduce public sector debt.

Financialization

Financialization denotes the increasing dominance of financial markets, financial motives, financial institutions, and financial elites in the economy, shaping corporate and economic policies.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, pension funds, and investment firms.