Finance as an (ever more fragile) ‘perpetual mania’: have they all lost their collective minds?
نویسندگان
چکیده
Abstract This paper analyses events in financial markets since the 2008 crisis both developed and developing worlds, giving especial attention to processes of ‘financialisation’. Its main conclusion is that we are paying price (a huge one) for two related phenomena. The first relates failure economic theory 1970s, especially (although not only) mainstream type, really take on board those developments world international finance ‘did fit their models’ (such as 1970s stagflation; Volker’s subsequent radical monetarist recession; ‘savings loan’ debacle following Reagan’s liberalisation deregulation?policies reinforced 1990s; inability monetarists, traditional Keynesian policies revert Japan’s ‘lost decade’; ‘endogenous’ nature crisis). Basically, has failed reinvent itself when needed it did after 1930s crash. second, turn, fact rocketing net worth a few individuals was rather odd way reactivate fragile economies 2020 pandemic. But rentier agents were allowed become ‘too-large-to-be-challenged’, likely these newly (and artificially) created ‘whales’ would capture policy-making this direction?leaving politicians central bankers tell stories explaining why very rich should biggest welfare recipients all time. As one group Native Americans used say, ‘Those who better at storytelling will dominate world’.
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ژورنال
عنوان ژورنال: Cambridge Journal of Economics
سال: 2022
ISSN: ['1464-3545', '0309-166X']
DOI: https://doi.org/10.1093/cje/beac031