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Stock Market, the Institutional Structure and Stability Problem in the Capitalist Economy

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  • A. Skorobogatov

Abstract

The paper addresses the problem of interaction of the stock market and real investment in the contemporary economy. The stock market and the real economy are considered as autonomous economic worlds with growing domination of the stock market. From the Post Keynesian perspective the author shows the implications of the stock market domination for economic stability and welfare. In particular, narrowing of the planning horizons and regular shocks due to volatility of finance availability are considered, which may facilitate the crisis because the economy is financially fragile. The institutional prerequisites for the stock market isolation and domination over the real sector are analyzed.

Suggested Citation

  • A. Skorobogatov, 2006. "Stock Market, the Institutional Structure and Stability Problem in the Capitalist Economy," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 12.
  • Handle: RePEc:nos:voprec:y:2006:id:1823
    DOI: 10.32609/0042-8736-2006-12-80-97
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