By Dimitris P. Sotiropoulos, John Milios, Spyros Lapatsioras
The contemporary monetary meltdown and the ensuing worldwide recession have rekindled debates concerning the nature of latest capitalism.
This ebook analyses the continuing financialization of the economic climate as a improvement inside of capitalism, and explores the ways that it has replaced the association of capitalist strength. The authors provide an interpretation of the function of the monetary sphere which monitors a notable distinction to the vast majority of modern heterodox ways. Their interpretation stresses the the most important function of economic derivatives within the modern association of capitalist strength kinfolk, arguing that the method of financialization is actually completely unthinkable within the absence of derivatives.
The booklet additionally makes use of Marx’s suggestions and a few of the arguments built within the framework of the old Marxist controversies on monetary crises to be able to achieve an perception into the trendy neoliberal type of capitalism and the new monetary main issue. applying a chain of overseas case experiences, this booklet may be crucial examining for all people with an curiosity within the monetary predicament, and all these trying to understand the workings of capitalism.
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Additional resources for A Political Economy of Contemporary Capitalism and its Crisis: Demystifying Finance
31 In this regard, capitalist profit is just a form of absolute rent as far as it is expropriated by the absentee rentier. It is the ruling role of the latter in the economy that renders capital scarce. In an economy in which capitalist enterprise is carried on largely with borrowed capital, “the payment of interest to the rentier-capitalist acts as a brake to progress” (Dillard 1942: 68). Keynes’ speculation is rather straightforward: In an environment of high interest rates, ceteris paribus, the marginal efficiency of capital matches them before full employment is achieved.
3 The incomes of the possessing classes are derived from the value of the totality of commodities produced by the laborers during a certain period of time. This suggestion implies a critique of the capitalist system (a critique that neither Smith nor Ricardo was brave enough to push it to its limits), which focuses on the mode of distribution and appropriation of labor and its products. This is so because both capitalist profit and ground rent have the same social nature: deductions from expended labor to the benefit of an economic agent external to the production process.
The new conception of finance had to rely on a criticism of the neoclassical theory of financial markets. It is from this period that two fundamental opposite discourses about finance emerge. The conflict between them embraces the underpinnings of contemporary debates as well. 2 The fundamental tension with regard to finance in the non- Marxian context It may sound awkward, but the fundamental difference (the point of departure) between the mainstream neoclassical conception of finance and the heterodox one (which was presented in this chapter) lies in the character of capitalist production.