Fifteen years after the Global Financial Crisis: Recessions and Business Cycles in the History of Economic Thought

Financialization Historically Contemplated: Putting Old Wine in New Barrels

Tsoulfidis Lefteris, University of Macedonia
Tsaliki Persefoni , Aristotle University of Thessaloniki

This article examines the extent to which financialization is a new phase of capital accumulation characterized by its own economic laws in which the real (production) economy adjusts accordingly. In order to examine this hypothesis, we invoke the share of the financial sector in the GDP of the USA, as the best meaningful metric to approximate the expansion of the financialization over time. Our findings suggest that the financialization phenomena of the post-1982 years are comparable to those of the “roaring 1920s”. The observed differences are quantitative, in the main, and although they suggest the presence of regularities; nevertheless, they do not suggest an altogether different stage of finance-led capitalism.

Area: Eshet Conference

Keywords: Financialization, profit rate, interest rate, long-cycles, financial fragility