Sunday , March 24 2019
Home / Stavros Mavroudeas Blog / Is the Financialization Hypothesis a Theoretical Blind Alley? – World Review of Political Economy

Is the Financialization Hypothesis a Theoretical Blind Alley? – World Review of Political Economy

Summary:
World Review of Political Economy Vol. 9, No. 4, Journal Article Is the Financialization Hypothesis a Theoretical Blind Alley? Stavros Mavroudeas and Demophanes Papadatos World Review of Political Economy Vol. 9, No. 4 (Winter 2018), pp. 451-476 Published by: Pluto Journals DOI: 10.13169/worlrevipoliecon.9.4.0451 https://www.jstor.org/stable/10.13169/worlrevipoliecon.9.4.0451 Page Count: 26 https://www.jstor.org/stable/10.13169/worlrevipoliecon.9.4.0451?seq=1#page_scan_tab_contents Abstract The Financialization Hypothesis is a popular argument in contemporary heterodox and also mainstream economics. It maintains that capitalism has undergone a radical transformation over at least the past three decades. The financial system, through a series of innovative

Topics:
Stavros Mavroudeas considers the following as important: , , , , , , , , , , ,

This could be interesting, too:

Mike Norman writes Magpie — Parallel Lives

Mike Norman writes Peter May — A communist manifesto for money?

Mike Norman writes Peter Cooper — MMT and Capitalism from a Marxist Standpoint

Stavros Mavroudeas writes Interview in Press TV News (8-1-2019) on WB president’s resignation

World Review of Political Economy

Journal Article

Is the Financialization Hypothesis a Theoretical Blind Alley?

Stavros Mavroudeas and Demophanes Papadatos
World Review of Political Economy
Vol. 9, No. 4 (Winter 2018), pp. 451-476
Published by: Pluto Journals
DOI: 10.13169/worlrevipoliecon.9.4.0451
Page Count: 26
Is the Financialization Hypothesis a Theoretical Blind Alley? – World Review of Political Economy

Abstract

The Financialization Hypothesis is a popular argument in contemporary heterodox and also mainstream economics. It maintains that capitalism has undergone a radical transformation over at least the past three decades. The financial system, through a series of innovative mechanisms, has conquered the commanding heights of capitalism and has changed the whole system according to its own prerogatives. Concomitantly, the global capitalist crisis of 2008 is considered to have been a financialization crisis. This article disputes the Financialization Hypothesis and argues that instead of casting light on the actual workings of modern capitalism, it misconstrues them and leads into an explanatory blind alley. The spectacular ballooning of the financial system during the recent decades of weak profitability and accumulation does not constitute a new epoch, let alone a new capitalism. Instead, it represents a familiar capitalist response to periods of weak profitability. This does not preclude the proliferation of new financial instruments, which lend specific new forms to a well-known capitalist process. The Marxist theory of crisis and fictitious capital offers an analytically and empirically superior understanding of this process.
Stavros Mavroudeas
He is currently Professor of Political Economy at the Department of Social Policy of Panteion University. He was previously Professor of Political Economy at the Department of Economics of the University of Macedonia. He studied at the Economics Department of the National Kapodistriakon University of Athens, from where he received his BA Economics (1985 - First Class Honours).

Leave a Reply

Your email address will not be published. Required fields are marked *