Stravelakis, Nikos (2012): Marx's theory of crisis in the context of financialization. analytical insights on the current crisis.
Download (720kB) | Preview
In the context of the current crisis a vigorous debate is taking place with regard to its’ cause . A debate which has important policy implications in the sense that it justifies or condemns the main reaction policy to the evolution of the crisis i.e. the persistent securitization of financial capital on a global scale through trillions of government and central bank money resting in private bank vaults until proven insufficient, triggering a new round of bank refinance and / or recapitalization. The main question to be answered, in order to understand the present crisis, is whether the explosion of interest rates and the lack of credit is the cause or the trigger of a depression and why. If financial turmoil is the cause of depressions then each crisis is unique, the result of a «black swan» game and securitization will prove efficient since no risk arises from capitalist production and the reproduction of capital. Of course, history has taught us that capitalist economies experience periods of prosperity followed by depressions with almost periodical recurrence. However, the present crisis poses additional questions for Marxist and heterodox economics, since it prevailed following a period of stable (not declining) profit rates associated with weak corporate growth side by side with an explosion of financial sector growth a phenomenon referred to as financialization of capital. Contributing to the response to these questions is the main scope of this paper.
|Item Type:||MPRA Paper|
|Original Title:||Marx's theory of crisis in the context of financialization. analytical insights on the current crisis|
|Keywords:||Marx's Theory of Crisis, Financialization, Rate of Profit, Profit of Enterprise|
|Subjects:||B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B51 - Socialist ; Marxian ; Sraffian
B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B22 - Macroeconomics
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
|Depositing User:||Nikos Stravelakis|
|Date Deposited:||14. Jun 2012 22:35|
|Last Modified:||26. Feb 2013 14:06|
Lapavitsas 2009 : Financialization and Capitalist Accumulation: Structural Accounts of the Crisis of 2007-9 Discussion paper 16. RMF series SOAS.
Roubini N and Mihm S «Crisis Economics» Penguin books 2011
Flamant and Jeanne Singer-Kerel, Modern Economic Crises, London: Barrie & Jenkins, 1970
Grossman H. « Law of Accumulation and Breakdown» ,Pluto publications 1929,
Mandel E. «Long Waves in Capitalist Development» Cambridge University Press 1980,
Shaikh A : «The Falling Rate of Profit as the Cause of Long Waves: Theory and Empirical Evidence» in New Findings in Long Wave Research, Alfred Kleinknecht, Ernest Mandel, and Immanuel Wallerstein (eds.), Macmillan Press, London
Shaikh A. : «The First Great Depression of the 21st Century» Socialist Register, 2011
Marx K «The Capital VIII p 235 International Publishers, NY, [n.d.]First Published: 1894; On-Line Version: Marx.org 1996, Marxists.org 1999
Dumenil, G. 1977. Marx el Keynes Face a la crise. Paris: Economica.
Folley D 1984. "Money, Accumulation, and Crises." Mimeo
Shaikh A. Accumulation, Finance, and Effective Demand in Marx, Keynes, and Kalecki in Financial Dynamics and Business Cycles: New Prospects, Willi Semmler, (ed.), M.E. Sharpe, Armonk, New York (1989
Goodwin R.M. : «A Growth Cycle», 1967, in Feinstein, editor, Socialism, Capitalism and Economic Growth
Asimakopulos, A. 1983. "Kalecki and Keynes on Finance, Investment, and Saving."Cambridge Journal of Economics 37(Sept./Dec.) .
Feigenbaum MJ The metric universal properties of period doubling bifurcations and the spectrum for a route to turbulence. Annals of the New York Academy of Sciences. 1980;357:330- 336
Brigs 2001 « Feigenbaum Scaling in Discrete Dynamical Systems» Phd Dissertation Department of Mathematics University of Melbourne JAN 2001.
B.Mandelbrot and R,Hudson «The ( Mis) Behavior of Markets»
May R. “Biological Populations Obeying Difference Equations : Stable Points, Stable Cycles, and Chaos» Journal of theor. Biology (1975) 51, 511-524
Available Versions of this Item
- Marx's theory of crisis in the context of financialization. analytical insights on the current crisis. (deposited 14. Jun 2012 22:35) [Currently Displayed]