Table of Contents

The Great Financial Meltdown

The Great Financial Meltdown

Systemic, Conjunctural or Policy Created?

New Directions in Modern Economics series

Edited by Turan Subasat

The Great Financial Meltdown reviews, advocates and critiques the systemic, conjunctural and policy-based explanations for the 2008 crisis. The book expertly examines these explanations to assess their analytical and empirical validity. Comprehensive yet accessible chapters, written by a collection of prominent authors, cover a wide range of political economy approaches to the crisis, from Marxian through to Post Keynesian and other heterodox schools.

Chapter 8: The value of history and the history of value

Radhika Desai

Subjects: economics and finance, financial economics and regulation, radical and feminist economics


This chapter argues that Marxist economics cannot explain the present crisis because, as a discipline, it is not geared to. It is an oxymoron attempting fit Marxism to the methodological frame of marginalist neoclassical economics. The latter is antithetical to Marxism because it is ahistorical. In place of Marxist economics, this chapter proposes a geopolitical economy which exploits the resources of the historical the traditions of classical political economy and the critics of neoclassical economics in a way that enables us to view the present crisis in its historical and world perspective. It proceeds by first outlining a critique of Marxist economics and follows it up with a discussion of the variety of forms of capitalist crises. These discussions clear the ground for a historical view of value production and an understanding of the drivers of its own history. A full account of the present crisis being impossible here, the chapter closes with sketches of how geopolitical economy would approach two key elements of it: consumption demand and international capital flows.

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