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On the Nature and Causes of the Collapse of the Wealth of Nations, 2007-2008: The End of a Façade Called Globalization

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  • Erinc Yeldan

Abstract

In this working paper, Erinç Yeldan investigates the 2007-2008 financial crisis, hailed as the most devastating (and complex) crisis of capitalism since the great depression of 1929. He suggests that the 2007-2008 crisis was not the end result of a series of technical errors or ad hoc developments that occurred on their own, but was instead the result of the systemic imbalances of capitalism over the last three decades. In order to evaluate the conditions of the global crisis more clearly, Yeldan considers it critical that its underlying structural causes are understood. The paper reflects the Marxian literature on crises, prominently that of Rosa Luxemburg, pointing out to the necessity of a ‘corrective war’ in order to break with old institutions, old technologies, and old methods of accumulation.

Suggested Citation

  • Erinc Yeldan, 2009. "On the Nature and Causes of the Collapse of the Wealth of Nations, 2007-2008: The End of a Façade Called Globalization," Working Papers wp197, Political Economy Research Institute, University of Massachusetts at Amherst.
    • Handle: RePEc:uma:periwp:wp197
    as

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    References listed on IDEAS

    as
    1. Lance Taylor, 1998. "Lax Public Sector, Destabilizing Private Sector: Origins of Capital Market Crises," SCEPA working paper series. 1998-11, Schwartz Center for Economic Policy Analysis (SCEPA), The New School, revised Oct 1998.
    2. Adelman, Irma & Yeldan, Erinc, 2000. "Is this the end of economic development?," Structural Change and Economic Dynamics, Elsevier, vol. 11(1-2), pages 95-109, July.
    3. Gerald Epstein & Erinc Yeldan, 2008. "Inflation targeting, employment creation and economic development: assessing the impacts and policy alternatives," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(2), pages 131-144.
    4. Özgür Orhangazi, 2008. "Financialization and the US Economy," Books, Edward Elgar Publishing, number 12927, March.
    5. Calvo, Guillermo A. & Vegh, Carlos A., 1999. "Inflation stabilization and bop crises in developing countries," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 24, pages 1531-1614, Elsevier.
    6. Diaz-Alejandro, Carlos, 1985. "Good-bye financial repression, hello financial crash," Journal of Development Economics, Elsevier, vol. 19(1-2), pages 1-24.
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    More about this item

    Keywords

    Crises of capitalism; Bretton Woods system; golden age of capital; financialization; corrective war;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F01 - International Economics - - General - - - Global Outlook
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • G01 - Financial Economics - - General - - - Financial Crises

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