IDEAS home Printed from
   My bibliography  Save this article

The David Gordon Memorial Lecture: Finance without Financiers: Prospects for Radical Change In Financial Governance


  • Gerald Epstein

    () (University of Massachusetts, Amherst)


In response to the financial crisis of 2007-20I0, governments in the United States, Europe, and elsewhere have invested billions of dollars in financial institutions to prevent them from going bankrupt and from further disrupting the global economy. Despite these massive public bail-outs, a government and "elite" consensus has emerged that these nationalized or quasi- nationalized financial institutions should be privatized as soon as possible, and that, apart from modest changes in financial regulation, our economies should return to the status quo ante financial structure. I disagree. As the crisis reveals, "financier" dominated finance has a number of devastating flaws: it creates major externalities that contribute to financial and real economic instability; it promotes short-term investment strategies; it contributes to inequality; and it undermines economic efficiency and the achievement of social goals in the real economy. I argue that a better strategy for achieving economic recovery, restructuring, and widely shared, sustainable prosperity is to use public investments in the financial sector to build on the successful post-World War II experiences of publicly oriented financial institutions to create a stronger presence of "finance without financiers."

Suggested Citation

  • Gerald Epstein, 2010. "The David Gordon Memorial Lecture: Finance without Financiers: Prospects for Radical Change In Financial Governance," Review of Radical Political Economics, Union for Radical Political Economics, vol. 42(3), pages 293-306, September.
  • Handle: RePEc:sae:reorpe:v:42:y:2010:i:3:p:293-306

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. repec:zbw:espost:157775 is not listed on IDEAS
    2. repec:zbw:espost:157771 is not listed on IDEAS
    3. Shimshon Bichler & Jonathan Nitzan, 1996. "Military Spending and Differential Accumulation: A New Approach to the Political Economy of Armament — The Case of Israel," Review of Radical Political Economics, Union for Radical Political Economics, vol. 28(1), pages 51-95, March.
    4. repec:zbw:espost:157978 is not listed on IDEAS
    5. repec:zbw:esthes:157989 is not listed on IDEAS
    6. Nitzan, Jonathan, 1992. "Inflation As Restructuring. A Theoretical and Empirical Account of the U.S. Experience," EconStor Theses, ZBW - German National Library of Economics, number 157989, April.
    7. repec:zbw:espost:157773 is not listed on IDEAS
    8. Steedman, Ian, 1975. "Positive Profits with Negative Surplus Value," Economic Journal, Royal Economic Society, vol. 85(337), pages 114-123, March.
    9. Rowley, Robin & Bichler, Shimshon & Nitzan, Jonathan, 1988. "Some Aspects of Aggregate Concentration in the Israeli Economy, 1964-1986," MPRA Paper 5395, University Library of Munich, Germany.
    10. Harcourt,G. C., 1972. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9780521096720, March.
    11. Veblen, Thorstein, 1904. "Theory of Business Enterprise," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1904.
    12. repec:zbw:espost:157777 is not listed on IDEAS
    13. repec:zbw:espost:157774 is not listed on IDEAS
    14. repec:zbw:espost:157776 is not listed on IDEAS
    15. repec:zbw:espost:157770 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Cibils, Alan & Allami, Cecilia, 2013. "Financialisation vs. Development Finance: the Case of the Post-Crisis Argentine Banking System," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 13.
    2. Hale Balseven, 2016. "The Political Economy of Financial Regulation Policies Following the Global Crisis," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 607-616.
    3. Gerald Epstein, 2014. "Restructuring finance to promote productive employment," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 11(2), pages 161-170, September.

    More about this item


    finance; financial restructuring; David Gordon;

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:42:y:2010:i:3:p:293-306. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.