Financialization : the economics of finance capital domination / Thomas I. Palley, Economic Policy Adviser, AFL-CIO, USA.

Format:

Book

Author/Creator:

Palley, Thomas I., 1956-

Language:

English

Subjects (All):

Capitalism.

Finance.

Neoliberalism.

Economics.

Physical Description:

x, 234 pages : illustrations ; 23 cm

Place of Publication:

Houndmills, Basingstoke, Hampshire : Palgrave Macmillan, 2013.

Summary:

This book explores the process of financialization whereby economies are increasingly dominated by finance capital. This process is characterized by rising income inequality, wage stagnation, increased indebtedness, a rising financial sector share of profits, and tendencies to generate asset price bubbles. The financial crisis of 2008 and the subsequent recession and stagnation represent the latest phase. The book provides a comprehensive treatment of these developments, beginning with a presentation of the empirical evidence. That is followed by economic theory chapters dealing with the macroeconomics of financialization, business cycle effects; microeconomic developments; tendencies toward Minsky-style economic instability; and economic growth effects. The final section of the book focuses on the political economy of financialization and policies to stabilize financial markets. Book jacket.

Contents:

1 Overview: Financialization as Financial Neoliberalism 1

Part I The Macroeconomics of Financialization

2 Financialization: What It Is and Why It Matters 17

3 The Macroeconomics of Financialization: Stages of Development Approach 41

4 The Simple Analytics of Debt-driven Business Cycles 62

5 Deflation and Inflation Dynamics with Debt 82

Part II Financialization and Instability

6 Herd Behavior: Safety in Numbers 105

7 Short-termism: The Problem of Managerial Turnover 112

8 A Theory of Minsky Super-cycles and Financial Crises 126

Part III Financialization and Growth

9 Inside Debt and Economic Growth 145

Part IV Financialization and Policy

10 A Monetary Policy Framework for Asset Price Bubbles 165

11 Monetary Policy and Central Banking after the Crisis: The Implications of Rethinking Macroeconomic Theory 182

12 The Political Economy of Financialization 201.

Notes:

Includes bibliographical references (pages 221-230) and index.

ISBN:

9781137265814

1137265817

OCLC:

837924214