The Dissolution of the Financial State

A Marxian Examination of the Political Economy of Money Since the 1930s

Business & Finance, Economics, Comparative Economics, Business Reference, Government & Business, International Economics
Cover of the book The Dissolution of the Financial State by Simon Mouatt, Lexington Books
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Simon Mouatt ISBN: 9780739190388
Publisher: Lexington Books Publication: August 6, 2015
Imprint: Lexington Books Language: English
Author: Simon Mouatt
ISBN: 9780739190388
Publisher: Lexington Books
Publication: August 6, 2015
Imprint: Lexington Books
Language: English

This book argues that post-Keynesian theories of endogenous money can be combined with Marxian analysis in order to give insight into the changing power relations between the state, finance sector and real economy since WW2. A key theme is that financial power, derived from the control of money-issue and its purchasing power, is determined by the state and market in varying proportions (depending on context) but that state sovereignty has been lost in recent decades. In addition, the growth of financial markets in recent decades, so-called financialization, has led many to assume that private finance is an important proximate driver of economic affairs in general. In contrast, the book argues that this provides insufficient explanation of events. To discuss financial factors as causes of financial crisis risks describing the phenomena without illustrating the root causes. Instead, the book argues that systemic drivers of capitalism (rooted in production), probably best understood by Marx, actually do provide a more plausible explanation of the causes of the financialization and erosion of state sovereignty. In addition, the Post-Keynesian descriptions of monetary processes are considered to best reflect the actual reality of the monetary system. This represents an interesting synthesis of the classical Marx with modern money theory. The interpretation of Marx used to explain this financial transformation has been named the Temporal Single System Interpretation, which illustrates Marx’s value theory across periods and identifies a tendency towards falling profit rates. It is claimed that falling profits, in turn, are an underlying driver of the systemic propensity towards financialisation, crisis and stagnation. The empirical findings presented, taken from case studies of the UK and Germany, appear to support this view.

The central argument is that the response of agents (including the state) to the profit tendency has been a significant driver of the observed financial transformation. The book then concludes that this synthesis provides a more appropriate explanation of the historical transformation of the financial system since the Great Depression, than much of the financialization literature, and illustrates the source (and operation) of financial power in the modern capitalist state and market.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

This book argues that post-Keynesian theories of endogenous money can be combined with Marxian analysis in order to give insight into the changing power relations between the state, finance sector and real economy since WW2. A key theme is that financial power, derived from the control of money-issue and its purchasing power, is determined by the state and market in varying proportions (depending on context) but that state sovereignty has been lost in recent decades. In addition, the growth of financial markets in recent decades, so-called financialization, has led many to assume that private finance is an important proximate driver of economic affairs in general. In contrast, the book argues that this provides insufficient explanation of events. To discuss financial factors as causes of financial crisis risks describing the phenomena without illustrating the root causes. Instead, the book argues that systemic drivers of capitalism (rooted in production), probably best understood by Marx, actually do provide a more plausible explanation of the causes of the financialization and erosion of state sovereignty. In addition, the Post-Keynesian descriptions of monetary processes are considered to best reflect the actual reality of the monetary system. This represents an interesting synthesis of the classical Marx with modern money theory. The interpretation of Marx used to explain this financial transformation has been named the Temporal Single System Interpretation, which illustrates Marx’s value theory across periods and identifies a tendency towards falling profit rates. It is claimed that falling profits, in turn, are an underlying driver of the systemic propensity towards financialisation, crisis and stagnation. The empirical findings presented, taken from case studies of the UK and Germany, appear to support this view.

The central argument is that the response of agents (including the state) to the profit tendency has been a significant driver of the observed financial transformation. The book then concludes that this synthesis provides a more appropriate explanation of the historical transformation of the financial system since the Great Depression, than much of the financialization literature, and illustrates the source (and operation) of financial power in the modern capitalist state and market.

More books from Lexington Books

Cover of the book The Political Life of Bella Abzug, 1976–1998 by Simon Mouatt
Cover of the book The Perplexity of a Muslim Woman by Simon Mouatt
Cover of the book Locke, Hume, and the Treacherous Logos of Atomism by Simon Mouatt
Cover of the book Impartial Justice by Simon Mouatt
Cover of the book Critical Issues in Peace and Conflict Studies by Simon Mouatt
Cover of the book Immigrant and Migrant Workers Organizing in Canada and the United States by Simon Mouatt
Cover of the book Fighting Words and Feuding Words by Simon Mouatt
Cover of the book Order Ethics or Moral Surplus by Simon Mouatt
Cover of the book Postapocalyptic Fiction and the Social Contract by Simon Mouatt
Cover of the book Communicating during Humanitarian Medical Crises by Simon Mouatt
Cover of the book Civil Society and World Regions by Simon Mouatt
Cover of the book Domination and Subordination as a Social Organization Principle in Georg Simmel's Soziologie by Simon Mouatt
Cover of the book Environmental Cooperation as a Tool for Conflict Transformation and Resolution by Simon Mouatt
Cover of the book Security Governance in East Africa by Simon Mouatt
Cover of the book Reading Japan Cool by Simon Mouatt
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy