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 15: Which crisis, of which capitalism? A Marxian and financial Keynesian interpretation of neoliberalism and the great recession

Riccardo Bellofiore

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


This chapter argues that Marxian theory together with financial Keynesianism may contribute to understanding the current ‘great’ capitalist crisis. Both however need some revision in the light of changing capitalist reality. The chapter first presents some considerations about the Marxian theory of crisis. It then does the same with some interesting developments within financial Keynesianism. The author’s perspective is that financial Keynesianism must be incorporated within Marxian theory. Marxian theory and financial Keynesianism must be reread in a long-run perspective of the capitalist dynamics. This will help to resolve internal difficulties of the theories. The chapter then discusses the idiosyncratic features of neoliberalism. The author refers to the interpretations of neoliberalism which see it not as a resurrection of laissez-faire but as a politically managed configuration of capitalism. The chapter then shows that neoliberalism was a kind of paradoxical financial and privatized Keynesianism, a money manager capitalism built upon a ‘concentration without centralization’ of capital, new forms of corporate governance, a new kind of aggressive competition, capital market inflation, manic savers leading to indebted consumption and a new active economic policy. It was a capitalist configuration which presented itself under the appearance of a ‘new’ capitalism. Finally, the chapter briefly discusses the global and European crises.

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