Systemic, Conjunctural or Policy Created?
Edited by Turan Subasat
Chapter 12: Inequality, money markets and crisis
AbstractBy the end of 2009, all impaired Alt-A and subprime mortgage-backed securities amounted to about $300 billion, about 2 per cent of gross domestic product. So how did problems in only a small part of the financial system cause the imminent collapse of the whole financial system? This chapter focuses on the underlying structure of the United States financial system in order to explain the systemic nature of the financial crisis, offering a more focused historical perspective on its evolution. The growth of the neoliberal financial sector and its compensation packages is generally considered to be one of the proximate causes of the growth of inequality. This causal chain also works in the opposite direction: the growth in inequality at the top of the income distribution is a major cause of the growth of the neoliberal financial sector and its instabilities. The chapter explores in detail how and why this was so.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.