Advertisement

Neoclassical Economics, Marx and Keynes, and the Global Financial Crisis

  • Chandana Ghosh
  • Ambar Nath Ghosh
Chapter

Abstract

This chapter shows that all the major capitalist countries in the world today are going through a prolonged phase of recession and seeks to explain this phenomenon. It observes that the recessions in these countries have followed formation and collapse of huge asset price bubbles, which precipitated deep economic crises. Carefully analysing available evidences, this chapter argues that these phenomena have been deliberately caused by the global financial capital (or giant capitalists) in connivance with the central banks and the governments of the countries where the crises have occurred. Keynesian stabilization measures have been deliberately designed in such a manner that recession persists at a desired level indefinitely following the crisis.

Keywords

Asset price bubble Speculative activities Global financial capital 

References

  1. Bernanke, B. (1983). Non-Monetary Effects of Financial Crisis in the Propagation of the Great Depression. The American Economic Review, 73(3), 257–276.Google Scholar
  2. Bernanke, B., Gertler, M., & Gilchrist, S. (1996). The Financial Accelerator and Flight to Quality. Review of Economics and Statistics, LXXVIII(1), 1–15.Google Scholar
  3. Ghosh, C. and Chosh, A. (2016). Indian Economy, PHI Learning, Delhi.Google Scholar
  4. Himmelberg, C., Mayer, C., & Sinai, T. (2005). Assessing High House Prices: Bubbles, Fundamentals and Misperceptions. Journal of Economic Perspectives, 19(4), 67–92.CrossRefGoogle Scholar
  5. Khandani, A., Lo, A. W., & Merton, R. C. (2009). Systemic Risk and the Refinancing Ratchet Effect. NBER Working Paper 15362, September.Google Scholar
  6. Mishkin, F. S. (2009). Is Monetary Policy Effective during Financial Crises. American Economic Review, 99(2), 573–577.CrossRefGoogle Scholar
  7. Mishkin, F. S. (2011). Over the Cliff: From the Subprime to the Global Financial Crisis. Journal of Economic Perspectives, 25(1, Winter), 49–70.CrossRefGoogle Scholar
  8. Taylor, J. B. (2009). Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis. Stanford, CA: Hoover Institution Press.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Chandana Ghosh
    • 1
  • Ambar Nath Ghosh
    • 2
  1. 1.Economic Research UnitIndian Statistical InstituteKolkataIndia
  2. 2.Economics DepartmentJadavpur UniversityKolkataIndia

Personalised recommendations