Conceptual Article

How Financial and Credit Markets Work, as Opposed to Goods Markets

Francesco Felis
University of Genoa, Italy
📘 Volume 1, Issue 2 📄 Pages: 1-22 📅 October 10, 2026 🔗 DOI: Pending 🏷️ Conceptual Article

Article Information

Article Type: Conceptual Article
Submitted: September 26, 2026
Accepted: September 27, 2026
Published: October 10, 2026
Pages: 1-22
DOI: Pending
Language: English
License: CC BY 4.0

Abstract

The influences and consequences of the financial sector spilling over into the real sector mean that the real sector-not just the financial one-fails to align with the model predicted by the dominant neoclassical theory of Lucas, Sargent, Modigliani and Friedman. In fact, this model does not exist; for if it does not exist in the financial sector, it cannot exist in the real sector either-unless one assumes the existence of separate worlds. Let us acknowledge the existence of information gaps, information asymmetry, and information inaccessible to other agents-concepts advanced by Akerlof, Stiglitz, and Shiller in opposition to Fama's views on the financial sector. Yet, if the financial market functions as described-operating independently of factors such as company value or stock fundamentals, and following its own logic that transcends information asymmetries and data regarding companies-can the neoclassical model truly be considered a model? Is it a benchmark or a standard point of reference?

Keywords

Financial Markets Credit Markets Keynesian Economics Monetary Theory Financial Instability Speculative Demand for Money Liquidity Preference Asset Prices Credit Leverage Market Equilibrium

Cite

Citation: Francesco Felis (2026) How Financial and Credit Markets Work, as Opposed to Goods Markets. Epistora J. Econ. & Fin. Stud. 1(2), 1-22. Article EJEFS-2026-112