By Dimitris P. Sotiropoulos, John Milios, Spyros Lapatsioras
The fresh monetary meltdown and the ensuing worldwide recession have rekindled debates in regards to the nature of up to date capitalism.
This e-book analyses the continued financialization of the economic system as a improvement inside of capitalism, and explores the ways that it has replaced the association of capitalist energy. The authors supply an interpretation of the position of the monetary sphere which monitors a notable distinction to the vast majority of modern heterodox techniques. Their interpretation stresses the the most important function of economic derivatives within the modern association of capitalist energy kin, arguing that the method of financialization is in reality solely unthinkable within the absence of derivatives.
The booklet additionally makes use of Marx’s recommendations and a few of the arguments built within the framework of the historical Marxist controversies on financial crises which will achieve an perception into the fashionable neoliberal type of capitalism and the new monetary obstacle. utilising a chain of overseas case reviews, this booklet can be crucial examining for all people with an curiosity within the monetary predicament, and all these looking to understand the workings of capitalism.
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This quantity publishes a wide selection of records. integrated are Notes taken by way of Henry R. Seager in 1890; Robert Hoxie's Introductory Lecture at the nature of the heritage of political economic system (1916) coupled with a web dialogue at the heritage of monetary inspiration because the heritage of mistakes (2005); legislation tuition pupil papers on John R.
This can be the second one of a two-volume paintings meant to operate as a textbook good as a reference paintings for fiscal for graduate scholars in economics, as students who're both operating in idea, or who've a robust curiosity in fiscal thought. whereas it's not worthwhile pupil learn the 1st quantity earlier than tackling this one, it can make issues more uncomplicated to have performed so.
Highbrow advances in economics usually come from debates which were partially forgotten yet which provide context, intensity, dedication and readability to modern research. crucial READINGS IN ECONOMICS makes to be had in one quantity a few of the seminal papers within the quarter of microeconomics and macroeconomics for introductory and intermediate classes in fiscal rules, and has an advent via Saul Estrin and Alan Marin.
Additional resources for A Political Economy of Contemporary Capitalism and its Crisis: Demystifying Finance
As mentioned above, Keynes did consider labor as the sole production factor (including in it the performance of managers). In his viewpoint, capital is not productive and returns yield to its proprietor because of its “scarcity”: It is much preferable to speak of capital as having a yield over the course of its life in excess of its original cost, than as being productive. For the only reason why an asset offers a prospect of yielding during its life services having an aggregate value greater than its initial supply price is because it is scarce; and it is kept scarce because of the competition of the rate of interest on money.
The same outline also sums up an interpretation of capitalism that characterizes many recent radical approaches, such as those of Negri (2010), Hardt (2010) and Zizek (2012) (according to these, contemporary capitalism is marked by a shift from profit to rent). It seems that the Ricardian framework in its most general reading is far more influential in the field of political economy than is usually thought. 1 The “cult” of common stocks What is actually missing from the above Ricardian framework is some explicit reference to the workings of the financial system.
According to the mainstream thinking, “this is where both the merits of arm’s-length financial system and its cost arise” (Rajan 2010: 124). Continuing in the mainstream thinking, the car-maker capitalist or the manager of a joint-stock company produces a useful thing along with profit. In this “real” sector of the economy the making of profits is directly linked to the making of use values. Many authors, from a heterodox point of view, use the Marxian formula: M − C − Μ′ (M stands for money and C for commodity), to make a similar point: the use value C as a mere mediator becomes subservient to increasing the initially invested money capital M.