Financial Market Drift

1. Introduction.- 1.1 Defining the problem.- 1.2 Classification of the decoupling problem.- 1.3 Structure of the study.- 2. The relative sizes of the financial sector and the real economy.- 2.1 Definitional background to financial accounts.- 2.2 Empirical studies of financial sector growth in the development process.- 2.3 Studies of the decoupling hypothesis.- 3. Current empirical studies of decoupling characteristics.- 3.1 Analysis of financial asset ratios in Germany.- 3.2 Analysis of international foreign exchange trading turnover.- 3.3 Analysis of equity market volumes focusing on the USA.- 3.4 Excursus: Costly financial market turnover without a reasonable result?.- 4. Analysis of possible decoupling consequences for the financial sector.- 4.1 Decoupling as a reflection of CAPM mis-specifications.- 4.2 Price volatility.- 4.2.1 Introduction.- 4.3 Prices.- 4.4 Financial sector stability.- 5. Economic policy: Assessment and options.- 5.1 Evidence for the decoupling hypothesis.- 5.2 Three evaluation-driven response concepts.- 6. Concluding assessment of the decoupling hypothesis.- List of figures.- List of tables.