By Dimitris P. Sotiropoulos, John Milios, Spyros Lapatsioras

The fresh monetary meltdown and the ensuing worldwide recession have rekindled debates concerning the nature of latest capitalism.

This booklet analyses the continuing financialization of the economic system as a improvement inside capitalism, and explores the ways that it has replaced the association of capitalist strength. The authors supply an interpretation of the function of the monetary sphere which monitors a awesome distinction to nearly all of modern heterodox techniques. Their interpretation stresses the the most important position of economic derivatives within the modern association of capitalist strength kinfolk, arguing that the method of financialization is in reality completely unthinkable within the absence of derivatives.

The ebook additionally makes use of Marx’s recommendations and a few of the arguments built within the framework of the ancient Marxist controversies on financial crises with a view to achieve an perception into the fashionable neoliberal type of capitalism and the hot monetary main issue. applying a sequence of foreign case reviews, this e-book could 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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Additional resources for A Political Economy of Contemporary Capitalism and its Crisis: Demystifying Finance (Routledge Frontiers of Political Economy)

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Like Ricardo’s landowner, the rentier enjoys incomes that do not correspond to any “real productive” contribution. ). The rentier is furthermore believed to be mostly a newcomer to economic life. According to Keynes, a new configuration of capitalism emerged in the late nineteenth century. : 147–150). 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.

59). The outcome is the emergence of a social regime that favors absentee owners and financial intermediaries. The social role of the absentee owner finds its complete form in the joint-­stock company (which, as we mentioned above, was the dominant form of capitalist enterprise of the period). Now the production of the real wealth continues to be subordinated to the quest for profit, not from the revenues from commodity sales but from increases in the capitalized property and maximization of financial values: The goods market, of course, in absolute terms is still as powerful an economic factor as ever, but it is no longer the dominant factor in business and industrial traffic, as it once was.

Nevertheless, bankers, brokers, and absentee The Keynes–Veblen–Proudhon tradition 27 investors unfortunately do. This fact has important consequences for them because the outcome of their effort is not visible to them. They do not produce use values and they get no “ethical” reward and motivation out of this. Neither the broker (who sells, for instance, corporate bonds issued by an industrial firm that produces cars) nor the investor (who puts these bonds in their portfolio) actually sees the cars, and therefore they are deprived of the feeling of creating something tangible and useful to society (sic).

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