“Financial” vs. “Real”: An Overview of the Contradictory Role of Finance
AbstractThis paper discusses the contradictory role and place of finance within the post-1980 U.S. economy. A central argument advanced is that the relationship between the real and financial sides of the economy has become increasingly more complicated and contradictory. Therefore, the distinction made between “real” and “financial” problems of the economy needs to be better qualified by taking into account the dynamics between the two. The contradictory relationship is analyzed through a discussion of finance in relation to labor and households, nonfinancial corporations, speculative asset bubbles, and global imbalances. This analysis shows that finance has been in a contradictory unity with the rest of the economy. It has contributed to some of the problems in the economy, while providing solutions to them at other instances, and in the process it shaped and in turn was shaped by the rest of the economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Political Economy Research Institute, University of Massachusetts at Amherst in its series Working Papers with number wp274.
Date of creation: 2011
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Crotty, 2008.
"Structural Causes of the Global Financial Crisis: A Critical Assessment of the ‘New Financial Architecture’,"
UMASS Amherst Economics Working Papers
2008-14, University of Massachusetts Amherst, Department of Economics.
- James Crotty, 2009. "Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'," Cambridge Journal of Economics, Oxford University Press, vol. 33(4), pages 563-580, July.
- James Crotty, 2008. "Structural Causes of the Global Financial Crisis: A Critical Assessment of the ‘New Financial Architecture’," Working Papers wp180, Political Economy Research Institute, University of Massachusetts at Amherst.
- Andrea Terzi, 2010. "Keynes's uncertainty is not about white or black swans," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 32(4), pages 559-566, July.
- Özgür Orhangazi, 2007.
"Financialization and Capital Accumulation in the Non-Financial Corporate Sector,"
wp149, Political Economy Research Institute, University of Massachusetts at Amherst.
- Ozgür Orhangazi, 2008. "Financialisation and capital accumulation in the non-financial corporate sector:," Cambridge Journal of Economics, Oxford University Press, vol. 32(6), pages 863-886, November.
- L. Randall Wray, 2008.
"Lessons from the Subprime Meltdown,"
M.E. Sharpe, Inc., vol. 51(2), pages 40-68, March.
- Paul Davidson, 2010. "Black swans and Knight's epistemological uncertainty: are these concepts also underlying behavioral and post-Walrasian theory?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 32(4), pages 567-570, July.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "This Time Is Different: Eight Centuries of Financial Folly," Economics Books, Princeton University Press, edition 1, volume 1, number 8973, February.
- James Crotty, 2000. "Structural Contradictions of the Global Neoliberal Regime," Published Studies ps6, Political Economy Research Institute, University of Massachusetts at Amherst.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Judy Fogg).
If references are entirely missing, you can add them using this form.