GGR221H1 Lecture Notes - Lecture 4: Economic Geography, Financialization, Price Drop
5 Feb 2017
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Document Summary
Financial activity creates an economic space and how the economic spaces that exist create. Importance of geography of finance: prior to 1970 economic geography was focused on commodity production, finance is part of economic geography. Increasing demand for speedy retunrs: wealth becomes more financialized, every increasing demand for quick returns, the cause of recent financial crisis rapid increase where investors were asking for more speedy returns. Very specific and detailed ways that financial activity has to do with creating the economy. Speeding this turnover of investment into wealth, there is every increasing speed over geographic distance, and it makes it easier to move wealth faster and easier. Distance and location has a lot to do with it, Time goes to infinity (when in reality they happen in measureable time, in milliseconds) The linear behaviour, financial activity has always been a wave. These equation require simultaneous action: no matter how close the servers are located, there is a lag time.
