Abstract
My focus is on economics and the banks or, more generally, economics and the whole financial system. And I want to do three things: first, set out some facts about the rising importance of finance within the economy; second, consider what orthodox economics said about the rising importance of finance before the crisis and how what it said turned out to be completely wrong; and third, discuss to what extent the profound mistakes of modern economics reflected the autonomous development of an intellectual tradition and how far, instead, the explanations lie in power relationships.
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Palley, T. (2016). Financialization vs. Efficient Markets: Reframing the Economics and Politics of Finance. In: Skidelsky, R., Craig, N. (eds) Who Runs the Economy?. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-58017-7_8
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DOI: https://doi.org/10.1057/978-1-137-58017-7_8
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