https://www.veritaswiki.org/index.php?action=history&feed=atom&title=Fictitious_EconomyFictitious Economy - Revision history2026-10-19T16:14:26ZRevision history for this page on the wikiMediaWiki 1.45.3https://www.veritaswiki.org/index.php?title=Fictitious_Economy&diff=114&oldid=prevToto: Created English encyclopedia entry on Fictitious Economy following Wikipedia-style standards2026-10-06T04:14:38Z<p>Created English encyclopedia entry on Fictitious Economy following Wikipedia-style standards</p>
<p><b>New page</b></p><div>The '''fictitious economy''' (also called the '''virtual economy''' in some translations, or the '''financial economy''') refers to the sphere of economic activity centred on financial assets and instruments—such as stocks, bonds, derivatives, and other securities—rather than on the production and exchange of real goods and services. The term is often used in contrast to the [[Real Economy|real economy]].<ref name="wiki">Wikipedia contributors, "Financialization".</ref><br />
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== Definition ==<br />
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The fictitious economy describes economic activity that is based on financial claims rather than on underlying production. The term, associated with the analysis of [[financialization]], highlights the potential for financial activity to expand far beyond the needs of the real economy, driven by speculation and leverage. It draws on the distinction, emphasised by some economists, between fictitious capital—claims on future production—and the real capital used in production.<ref name="wiki"/><br />
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== Characteristics ==<br />
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{| class="wikitable"<br />
! Feature<br />
! Description<br />
|-<br />
| Instruments<br />
| Stocks, bonds, derivatives, and other financial assets.<br />
|-<br />
| Driver<br />
| Expectations of capital gains and speculation.<br />
|-<br />
| Growth<br />
| Can expand much faster than the real economy.<br />
|-<br />
| Risk<br />
| Prone to bubbles, volatility, and systemic crises.<br />
|}<br />
== Relationship to the real economy ==<br />
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A well-functioning financial sector allocates capital to productive uses, supporting the real economy. But an excessively large or speculative financial sector can misallocate capital, generate asset bubbles, and transmit shocks, as occurred in the global financial crisis of 2008. The relationship between the real and financial economies is central to debates over financial regulation and economic policy.<ref name="wiki"/><br />
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== See also ==<br />
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* [[Real Economy]]<br />
* [[Digital Economy]]<br />
* [[Financialization]]<br />
* [[Financial crisis]]<br />
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== References ==<br />
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<references /><br />
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[[Category:Economics]]<br />
[[Category:Financial economics]]</div>Toto