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Great Recession, Financialization and Marxian Political Economy

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  • Hasan BAKIR
  • Görkem BAHTİYAR

Abstract

Mainstream economic approaches, such as Keynesian and Neoclassical, agree one another in that the crises of capitalism should be handled within the capitalism. While Keynesians defend preemptive state intervention to avoid crises, neoclassical economics believe that the market will solve all problems without the need to resort to state action. After the Great Depression in 1930, Keynesian economics gained popularity, while neoclassical economics took over in the 1970s. Today, Keynesian economics became popular again in the aftermath of 2008 financial crisis. According to them, there is no alternative to the market system. Marxian explanation of 2008 financial crisis presents an alternative to the both. In this light, the aim of this study is to discuss the Marxian take on the 2008 global crisis, focusing on the phenomenon of financialization in this context.Classification-JEL: A10, B22, G01Keywords: Crises, Great Recession, Economic Schools of Thought, Mainstream Economics, Marxian Political Economy.

Suggested Citation

  • Hasan BAKIR & Görkem BAHTİYAR, 2017. "Great Recession, Financialization and Marxian Political Economy," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(33).
    • Handle: RePEc:sos:sosjrn:170312
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    References listed on IDEAS

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    More about this item

    Keywords

    crises; great recession; economic schools of thought; mainstream economics; marxian political economy.;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics

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