credit creation shifted toward asset-based transactions, Debt, Financialization, Hyman Minsky, low risk-adjusted returns, Marx’s law of profitability, post-Keynesian analysis, profit, the falling rate of profit, the law of value, Wages
Financialisation, like neoliberalism, is the buzz word among leftists and heterodox economists. It dominates leftist academic conferences and circles as the theme that supposedly explains crises, as well as a cause of rising inequality in modern capitalist economies particularly over the last 40 years. The latest manifestation of this financialisation hypothesis comes from Grace Blakeley, a British leftist economist, who appears to be a rising media star in the UK. In a recent paper, she presented all the propositions of the financialisation school.
But what does the term ‘financialisation’ mean and does it add value to our understanding of the contradictions of modern capitalism and guide us to the right policy to change things? I don’t think so. This is because either the term is used so widely that it provides very little extra insight; or it is specified in such a way as to be both theoretically and…
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