Table of Contents

The Financialization Response to Economic Disequilibria

The Financialization Response to Economic Disequilibria

European and Latin American Experiences

New Directions in Post-Keynesian Economics series

Edited by Noemi Levy and Etelberto Ortiz

Europe and Latin America’s social and economic stagnation is a direct result of the unresolved phenomena of the financialization crisis that broke out in 2008 in developed countries. Editors Noemi Levy and Etelberto Ortiz analyze the limitations of economic growth and development under capitalist economic organizations where financial capital is dominant, as well as explore alternative economic policies.

Chapter 6: Inequality, technological change and worldwide economic recovery

Carlos A. Rozo

Subjects: development studies, development economics, economics and finance, financial economics and regulation, political economy, post-keynesian economics


In the chapter, ‘Inequality, technological change and worldwide economic recovery,’ the author argues that the financial system becomes dysfunctional when it is uncoupled from the productive sector, because it promotes non-productive activities that produce large short-term profits, accompanied by technological development that leads to unemployment as a result of digital technology and artificial intelligence. In addition, the combination of these processes slows down economic growth and leads to income concentration, preventing full economic development.

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