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Financial Capital Overaccumulation

Author

Listed:
  • Hsu, Sara

Abstract

Overaccumulation of financial capital at the expense of the real sector resulted in falling wages as well as in the most recent global financial crisis. This is a topic of increasing interest, as the idea that some developed economies have reached a stage of overfinancialization has gained some following. In this paper, we lay out a model of overaccumulation, which can be used as a constraint on any growth model.

Suggested Citation

  • Hsu, Sara, 2012. "Financial Capital Overaccumulation," MPRA Paper 41698, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41698
    as

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    File URL: https://mpra.ub.uni-muenchen.de/41698/1/MPRA_paper_41698.pdf
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    References listed on IDEAS

    as
    1. Hyman P. Minsky, 1977. "The Financial Instability Hypothesis: An Interpretation of Keynes and an Alternative to“Standard” Theory," Challenge, Taylor & Francis Journals, vol. 20(1), pages 20-27, March.
    2. José J Sidaoui, 2006. "The Mexican financial system: reforms and evolution 1995-2005," BIS Papers chapters, in: Bank for International Settlements (ed.), The banking system in emerging economies: how much progress has been made?, volume 28, pages 277-93, Bank for International Settlements.
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    Keywords

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    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • G01 - Financial Economics - - General - - - Financial Crises

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