IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/5586.html
   My bibliography  Save this paper

When Things Go Wrong: the Political Economy of Market Breakdown

Author

Listed:
  • Freeman, Alan

Abstract

Prepublication version of ‘When things go wrong: the Political Economy of Market Breakdown’ in Westra; R and Alan Zuege (Eds) (2003) Value and the World Economy Today: Production; Finance and Globalization; pp91-118. London:MacMillan; ISBN: 1 40390 002 7 This paper constructs a theoretical framework for understanding what happens when markets break down. It argues that when this happens; the ‘invisible hand becomes visible’ and conscious agencies (classes; states; governments; etc) intervene in the economy. ‘External Intervention’ into the market is thus not an imposition on the market but a product of the market. The paper grapples with what is arguably the most basic question in economics: are breakdown and recovery endogenous or exogenous? Do markets fall or are they pushed? Conversely; do they mend themselves; or does someone have to stick them back together? The primary ‘finding’ of all dominant economic theories is that the market works: that breakdown is exogenous and recovery is endogenous. I show that this finding arises from the shared starting point of these theories; the equilibrium or comparative static paradigm. This is equivalent to assuming that; the market works so perfectly that nothing needs to change. It then becomes impossible to deduce endogenous market failure. This why is one of the primary shortcomings of mainstream economic theory is its inability to two-way causal links between political institutions and the market.

Suggested Citation

  • Freeman, Alan, 2003. "When Things Go Wrong: the Political Economy of Market Breakdown," MPRA Paper 5586, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5586
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/5586/1/MPRA_paper_5586.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Freeman, Alan, 1995. "Marx without Equilibrium," MPRA Paper 1207, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. repec:eme:rpeczz:s0161-7230(2011)0000027013 is not listed on IDEAS
    2. Alan Freeman, 2010. "Crisis and “law of motion” in economics: a critique of positivist Marxism," Research in Political Economy,in: The National Question and the Question of Crisis, volume 26, pages 211-250 Emerald Publishing Ltd.
    3. Freeman, Alan & Kagarlitsky, Boris, 2004. "World Empire - or a world of Empires?," MPRA Paper 52543, University Library of Munich, Germany, revised 27 Dec 2013.
    4. Alan Freeman, 2011. "Crisis, Marxism, and Economic Laws: A Response to Gary Mongiovi," Research in Political Economy,in: Revitalizing Marxist Theory for Today's Capitalism, volume 27, pages 285-296 Emerald Publishing Ltd.
    5. Doctorovich Anatoly Borisovich & Kushlin Valery Ivanovich & Ustenko Victoria Sergeevna, 2014. "International experience of development and realization of the strategy of human resources management," Published Papers nvg111, Russian Presidential Academy of National Economy and Public Administration.

    More about this item

    Keywords

    Keywords: Divergence; stagnation; World Economy; Kondratieff; Development; Europe; US; value; price; TSSI; temporalism; profit rate; polarisation; inequality; globalisation; deregulation; imperialism; World Systems Theory; unequal exchange; dependency; North-South;

    JEL classification:

    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • B00 - Schools of Economic Thought and Methodology - - General - - - History of Economic Thought, Methodology, and Heterodox Approaches
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    Corrections

    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:pra:mprapa:5586. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.