Russo, Alberto and Zanini, Adelino (2010): On the expansion of finance and financialisation.
Download (101kB) | Preview
In this paper we explore the role of finance in the recent crisis noting that its expansion, in a context of deregulation and globalisation, has boosted financial profits and capital accumulation, but at the cost of a growing systemic instability both in the leading capitalist economy, i.e. the USA, and at the international level. The expansion of finance tends to emerge in certain phases of capitalist development, in particular during periods of countries’ decline. At the same time, each phase has its peculiar aspects and, referring to the recent evolution, we focus on the phenomenon of financialisation, intended as an increasing involvement of economic agents in the working of financial markets.
|Item Type:||MPRA Paper|
|Original Title:||On the expansion of finance and financialisation|
|Keywords:||deregulation; renationalisation; capitalist accumulation; instability; inequality|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E66 - General Outlook and Conditions
P - Economic Systems > P1 - Capitalist Systems > P17 - Performance and Prospects
G - Financial Economics > G0 - General > G01 - Financial Crises
|Depositing User:||Alberto Russo|
|Date Deposited:||18. Nov 2010 20:42|
|Last Modified:||02. Jan 2016 20:24|
Arrighi G. (1994), The Long Twentieth Century: Money, Power and the Origins of our Times, London: Verso.
Arrighi G. (2007), Adam Smith in Beijing: Lineages of the Twenty-First Century, London: Verso.
Crotty J. (2005), “The Neoliberal paradox: The impact of destructive product market competition and ‘modern’ financial markets on nonfinancial corporation performance in the Neoliberal era”, in Epstein G. (ed.), Financialization and the World Economy, Cheltenham and Northampton: Edward Elgar.
de Cecco M. (1999), “The lender of last resort”, Economic Notes, 28(1): 1-14.
de Cecco M. (2007), Gli anni dell’incertezza, Bari: Laterza.
Delli Gatti D., Gallegati M., Greenwald B., Russo A., Stiglitz J.E. (2010), “The financial accelerator in an evolving credit network”, Journal of Economic Dynamics and Control, 34(9): 1627-1650.
Dumenil G., Levy D. (2005), “Costs and benefits of Neoliberalism: A class analysis”, in in Epstein G. (ed.), Financialization and the World Economy, Cheltenham and Northampton: Edward Elgar.
Fumagalli A. (2007), Bioeconomia e capitalismo cognitivo. Verso un nuovo paradigma di accumulazione, Roma: Carocci.
Epstein G. (2005), “Introduction: Financialization and the world economy”, in Epstein G. (ed.), Financialization and the World Economy, Cheltenham and Northampton: Edward Elgar.
Epstein G., Jayadev A. (2005), “The rise of rentier incomes in OECD countries: Financialization, central bank policy and labor solidarity”, in Epstein G. (ed.), Financialization and the World Economy, Cheltenham and Northampton: Edward Elgar.
Graziani A. (2001), Teoria economica. Macroeconomia, Napoli: Edizioni Scientifiche Italiane.
IMF (2007), World Economic Outlook: Spillovers and Cycles in the Global Economy, International Monetary Fund, Washington, April.
IMF (2009), World Economic Outlook: Crisis and Recovery, International Monetary Fund, Washington, October.
IMF (2010), World Economic Outlook: Rebalancing Growth, International Monetary Fund, Washington, April.
Kindleberger C.P., Balibar R.Z. (2005), Manias, Panics, and Crashes. A History of Financial Crises, Hoboken: Wiley.
Kotz D.M. (2008), “Neoliberalism and financialization”, paper written for the conference in honour of Jane D'arista at the Political Economy Research Institute, University of Massachussets, May 2-3.
Lapavitsas C. (2010), “Financialisation and capitalist accumulation: structural accounts of the crisis 2007-9”, Discussion Paper No. 16, Research on Money and Finance, SOAS, University of London.
Li M., Xiao F., Zhu A. (2007), “Long waves, institutional changes, and historical trends: A study of the long-term movement of the profit rate in the capitalist world-economy”, Journal of World-Systems Research, 13(1): 33-54.
Marx (2009), Il capitalismo e la crisi, scritti scelti a cura di Vladimiro Giacchè, Roma: DeriveApprodi.
Milberg W., Winkler D. (2010), “Financialisation and the dynamics of offshoring in the USA”, Cambridge Journal of Economics, 34: 275-293.
Minsky H.P. (1982), “The financial instability hypothesis: capitalistic processes and the behavior of the economy”, in Kindleberger C.P., Laffargue J.-P. (eds), Financial Crises: Theory, History and Policy, Cambridge: Cambridge University Press.
Orhangazi O. (2007), “Financialization and capital accumulation in the non-financial corporate sector: A theoretical and empirical investigation of the US economy, 1973-2003”, PERI Working Paper Series No. 149, University of Massachussets Amherst.
Russo A. (2010), “Elementi di novità, meccanismi noti e cause di fondo della recente crisi”, MPRA Paper 21648, University Library of Munich.
Stiglitz J.E., Fitoussi J.-P. (2009), “The ways out of the crisis and the building of a more cohesive world”, Documents de Travail N. 17, OFCE Sciences Po.
Stockhammer E. (2004), “Financialisation and the slowdown of accumulation”, Cambridge Journal of Economics, 28(5): 719-741.
Uctum M., Viana S. (1999), “Decline in the US profit rate: A sectoral analysis”, Applied Economics, 31: 1641-1652.
van Treeck T. (2009), “The macroeconomics of 'financialisation' and the deeper origins of the world economic crisis”, IMK Working Paper No. 9.
Zanini A. (2008), Economic Philosophy. Economic Foundations and Political Categories, Oxford: Peter Lang.