Financial Journalism

Abstract

On a fundamental level, financial journalism provides information to individuals that helps them make informed economic choices, and understand how those choices impact their financial situation within the context of the broader political economy. The need for reliable information about prevailing business conditions has been recognized since the dawn of commerce, and since then financial journalism and commerce have developed together in a mostly symbiotic, albeit occasionally combative, relationship for hundreds of years. In its earliest iterations, in the 16th century, financial journalism consisted of little more than the publication of prices of commodities or other goods for sale. As trade and commerce expanded over the following centuries, so did the role and content of financial journalism. The globalization of commerce and increasing integration of the world economy since the late 20th century has increased the importance of financial journalism, while the spread of mass-market investment opportunities and defined-benefit retirement accounts in many countries has expanded the pool of individuals exposed to moves in financial markets, helping to make financial publications among the world’s most-read newspapers and websites. The focus of financial journalism is quite consistent no matter what country or language it is published in: broadly defined, financial journalism encompasses news about financial markets, macroeconomic data and trends, government economic policy, corporate news (especially earnings announcements), personal finance, and commentary about all of the above. However, the often mutualistic relationship between financial journalism and the organizations it covers has led to conflicts of interest, and to a debate over the proper role of a financial press: whether it is to merely disseminate data and information from those organizations, or to serve as a watchdog over them. For example, the bubble in internet-related shares in the 1990s was blamed partly on “boosterism” by the financial media, while many investors also blamed the financial press for failing to sound the alarm ahead of the Global Financial Crisis later in the following decade.