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A New Phenomenon: Financialization – an overview

A New Phenomenon: Financialization – an overview

From the mid-nineteenth century we witnessed a new phenomenon, the financialization of economies, a process in which the capitalist economy has become dominated by financial logic and the political system has been captured by that dynamic.

Financial Reform: Is the Volcker Plan Missing the Target ?

Financial Reform: Is the Volcker Plan Missing the Target ?

Former Federal Reserve (Fed) Chief Paul Volcker’s so called Financial Reform Plan, released after President Obama’s speech decrying ‘fat cats’ on Wall Street, could be one of the most important prescriptions for the post-financial crisis. Its in/correctness and/or in/efficiency may well be critical for reform of the entire global financial system. Unfortunately, the plan of the former Fed head seems to be either lacking key elements, or is insufficient as currently constituted. We interview two of today’s most important economics bloggers, University of Oregon Economics Professor Mark Thoma, editor of Economist’s View, and Dr. David Caploe, Chief Political Economist of the Singapore-based EconomyWatch.com, who holds a Ph.D. in International Political Economy from Princeton.

This financial crisis was different (from the past financial panics of the 20th Century)

A conversation with Gary Dymski, professor of Economics, University of California at Riverside

Interview by Jorge Nascimento Rodrigues, 2010 ©

“The danger we are running now: to have a gilded age instead of a Golden Age”, Carlota Perez

10Years after the first Nasdaq crash of March 2000: a conversation with Professor Carlota Perez
“[The third surge] did not really have a Golden Age but only a gilded age. And this is the danger we are running now [in this fifth surge].”

The trillionaire question: do we risk a short “belle époque” in the next decade followed by another Great Depression in a generation or less?
Dear readers, let us know what you think.

«Keynes would have hated the excessive ‘financialization’ of today»

Lord Skidelsky, Keynes’s biographer, presenting his new book about The Master. A short interview.

The end of money manager financial capitalism

«This current crisis is probably so severe that it will not only destroy a considerable part of the managed money, but it has already thoroughly discredited the money managers. Perhaps this will prove to be the end of this stage of capitalism—the money manager phase. Of course, it is too early to even speculate on the form capitalism will take.»

Remembering Hyman Minsky – a conversation with L. Randall Wray

«The role of finance has to be fundamentally rethought»

An alternative to the current mess would be to rethink the very basis of banking and finance, the essence of the financial rent-seeking economic model developed since the 1970s. But it is truly a political question, not an economic one, although it is an interesting debate for economists. Voters at polls will decide: «Do people want that? I can’t answer that question for them», says Professor Jamie Morgan. In the Economics field, the 2007-2009 crisis just smashed a certain brand of applied monetarism and also a kind of bastard Keynesianism. More heterodox thinking is required.

A conversation with Jamie Morgan, University of Helsinki