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Of Bubbles and Crises: A History of Wealth Creation

  • Robert P. Gilles
Chapter

Abstract

Capitalism is notoriously known to be prone to crises, referred to as recessions and depressions. This chapter discusses how institutions govern the production processes in a social division of labour and how the functionality of these institutions determines whether these production networks fail and cause an economic crisis. The chapter provides an overview of developments in economic history from this perspective. In particular, in this view the “Great Panic of 2008” can be understood as an institutional crisis in the financial networks of the global division of labour. This chapter also looks at the state of the global economy after 2008 and considers possible future trajectories for institutional economic development.

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© The Author(s) 2018

Authors and Affiliations

  • Robert P. Gilles
    • 1
  1. 1.Management SchoolQueen’s University BelfastBelfastUK

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