Financialisation, Household Behaviour, and the 2008–09 Crisis

Assignment Brief

Module Title:	Anatomy of Financial Crises	Module Code:	6BUS1002
Assignment Format & Maximum Word count	Referred/Deferred Assessment: Essay	Assignment Weighting:	70%
Internal Moderator	Approved ☐ Date:	Module Board name
External Examiner	Approved ☐ Date:	Module Board date

Assessment Criteria

Learning Outcomes: Knowledge and Understanding tested in this assignment:

LO 1- the interdependency between national economic policies and international economic/financial structure LO 2 - the key concepts and approaches used in the analysis of financial crises LO 3 - the distinct, country specific features of financial crises as well as observable common causes in cross country analysis

Learning Outcomes: Skills and Attributes tested in this assignment:

LO 4 - demonstrate a capacity to evaluate the symptoms of financial crises in different case studies LO 5 - discuss the strengths and weaknesses of various theories in explaining the emergence of financial crises LO 6 - reflect on case specific and more common causes of various financial crises covered in the module LO 7 - develop an ability for policy advice in relation to financial crises and advance their presentation and teamwork skills

Feedback /Marking criteria for this Assignment

Performance will be assessed using HBS Grading Criteria and Mark scheme. Guidance for improvement will be given in writing on the Assessment Feedback Form or on the StudyNet Feedback Form within 4 weeks of submission. Late assignments up to one week late will be reduced by 10 grade points per day will receive a maximum numeric grade of: Levels 4, 5 and 6 (UG) – 40 Level 7 (PG) – 50 Plagiarism offences will receive standard penalties.

Assignment Title: Referred/Deferred assessment: Essay

Description of the assignment:

Students, who score an average final mark that is below 40% and above 19%, will have to submit an essay on the following topic with 4000 words if they failed both assignments and with 2500 words if they failed only one element:

Essay Topic:

How has financialization changed the financial sector and household behaviour? Can financialization theories help us understand the 2008-9 crisis?

Mark scheme:

e.g.	Weighting
Presentation and structure (including Harvard referencing)	15%
Content (including research)	25%
Breadth and depth of knowledge	30%
Critical analysis and evaluation	30%
Total	100

Student Support and Guidance

• For further help, contact your module leader in their drop-in hours or by email.

• Use the Grading Criteria and Mark Scheme to help improve your work.

• Go to CASE workshops, use the CASE website and drop-in hours www.studynet.herts.ac.uk/go/CASE/

• Academic English for Business support is available through daily drop-ins from the CASE office.  See the CASE workshop timetable on the CASE main website page for details.

• Make full use of Library search to identify relevant academic material and the ‘Subject Toolkit for Business’ which contains links to other Information Databases and the Information Management contact details. (http://www.studynet1.herts.ac.uk/ptl/common/LIS.nsf/lis/4DAF5390094771C2802575ED004212BF) 

Some tutors allow students to test their work using Turnitin.

Sample Answer

Introduction

Over the past four decades, the concept of financialisation has become central to debates on the evolution of modern capitalism. Broadly understood, financialisation refers to the increasing dominance of financial motives, financial markets, financial actors, and financial institutions in the economy (Epstein, 2005). This process has fundamentally reshaped both the structure of the financial sector and the behaviour of households, influencing how income is generated, how assets are valued, and how risks are distributed. The global financial crisis of 2008–9 provides a unique context for analysing the effects of financialisation and assessing whether financialisation theories can help to explain the origins and dynamics of the crisis. This essay examines how financialisation has transformed the financial sector and household behaviour, critically evaluates the contribution of financialisation theories in explaining the 2008–9 crisis, and considers their broader strengths and weaknesses.

The Concept of Financialisation

Financialisation has been conceptualised in multiple ways. Krippner (2005) defines it as the shift in the economic system where profits are increasingly derived from financial activities rather than productive or trade-based activities. Palley (2007) similarly highlights how financialisation involves the subordination of the real economy to financial logic, with corporations focusing on shareholder value maximisation rather than long-term growth. Epstein (2005) further emphasises how financialisation reflects the growing power of financial markets and institutions to influence economic policy and social outcomes.

Key features of financialisation include the proliferation of financial innovations, the rise of securitisation, the expansion of shadow banking, and the growing penetration of finance into everyday life. It also involves ideological shifts, such as neoliberalism, which have promoted deregulation and global financial integration (Lapavitsas, 2013). Taken together, these dynamics set the stage for profound changes in both the financial sector and household behaviour.

Continued...