According to Nate Hagens, the financial system can be understood as an intricate network that organizes and facilitates the flow of money and credit within an economy, linking various economic agents, including individuals, businesses, and governments. It comprises institutions like banks, markets, and regulatory bodies, all working in unison to manage the allocation of resources, investments, and risk. Hagens emphasizes that this system is deeply intertwined with the broader ecological and energy realities, suggesting that it often operates on assumptions of perpetual growth and resource availability. He argues that understanding the financial system requires acknowledging its dependence on fundamental ecological constraints and the biophysical limits of our planet, which traditional economic models typically overlook.

See also: economic system, climate model, ecological economics, political economy, federal reserve