Financialization and Shadow Banking in a Stock-Flow Consistent Macroeconomic Agent-Based Model

Using a stock-flow consistent macroeconomic agent-based model, it is examined to what degree increased earnings concentration, rising share buyback volumes, central bank asset purchase programs and macroprudential regulations can account for financialization trends of the US economy. In addition, it is investigated how a variety of policy measures would have been effective in slowing down the shadow banking system’s expansion.