The transition towards finance-dominated capitalism: French Regulation School, Social Structures of Accumulation and post-Keynesian approaches compared

Hein, Eckhard; Dodig, Nina; Budyldina, Natalia

doi:10.4337/9781784715076.00007

Cited by 19 publications

(18 citation statements)

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“…Hein (2015), reviewing the empirical literature on the determinants of functional income distribution against the background of the Kaleckian theory of income distribution, has argued that features of finance-dominated capitalism have contributed to the falling labour income share since the early 1980s through three main channels: falling bargaining power of 25 Of course, there have been several estimations of single distribution, saving/consumption and investment equations including interest rates and debt variables, as reviewed by Hein (2014b, Chapter 9), however, without including them into a full distribution and growth model and deriving the respective regimes. 26 This section partly draws on Hein (2014b, Chapter 10) and Hein/Dodig/Budyldina (2015). 27 For further country studies, see the results of the large EU research project on Financialisation, Economy, Society, Sustainable Development (FESSUD), in particular the FESSUD Studies in Financial Systems, to which several post-Keynesians researchers, among others, have contributed: http://fessud.eu/studies-in-financialsystems/.…”

Section: Financialisation In Post-keynesian Distribution and Growth Mmentioning

confidence: 99%

Post-Keynesian macroeconomics since the mid 1990s: main developments

Hein

2017

European Journal of Economics and Economic Policies: Intervention

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractIn this paper the main developments in post-Keynesian macroeconomics since the mid1990s will be reviewed. For this purpose the main differences between heterodox economics in general, including post-Keynesian economics, and orthodox economics will be reiterated and an overview over the strands of post-Keynesian economics, their commonalities and developments since the 1930s will be outlined. This will provide the grounds for touching upon three important areas of development and progress of postKeynesian macroeconomics since the mid-1990s: first, the integration of distribution issues and distributional conflict into short-and long-run macroeconomics, both in theoretical and in empirical/applied works; second, the integrated analysis of money, finance and macroeconomics and its application to changing institutional and historical circumstances, like the process of financialisation; and third, the development of full-blown macroeconomic models, providing alternatives to the mainstream 'New Consensus Model' (NCM), and allowing to derive a full macroeconomic policy mix as a more convincing alternative to the one implied and proposed by the mainstream NCM, which has desperately failed in the face of the recent crises.

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Section: Financialisation In Post-keynesian Distribution and Growth Mmentioning

confidence: 99%

Post-Keynesian macroeconomics since the mid 1990s: main developments

Hein

2017

European Journal of Economics and Economic Policies: Intervention

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“…From a macroeconomic perspective, the development of finance-dominated capitalism or financialisaton can be characterised by the following elements, as reviewed and elaborated in Hein (2012, , and Hein and van Treeck (2010), for example, and briefly summarised in Hein, Dodig and Budyldina (2015):…”

Section: Theoretical and General Conceptual Frameworkmentioning

confidence: 99%

Financialisation and the financial and economic crises: theoretical framework and empirical analysis for 15 countries

Dodig¹,

Hein²,

Detzer³

2016

Financialisation and the Financial and Economic Crises

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper analyses the long-run effects of financialisation and of the recent financial and economic crises for 15 countries. In order to provide a theoretical framework, we first outline three types of regimes under the conditions of financialisation, namely a debtled private demand boom, an export-led mercantilist, and a domestic demand-led regime. We then take a look at the sectoral financial balances of the main macroeconomic sectors and at the growth contributions of the demand aggregates for each of the 15 countries, focusing in particular on the trade cycle before the crises. This enables us to cluster these countries according to the typology of regimes and describe the development dynamics among various groups, which were complementary and often mutually reinforcing, in the years leading up to the crises. Subsequently, we focus on the period following the outbreak of the crises and, by considering transmission mechanisms and main obstacles to recovery, analyse how countries in each of these clusters were affected. Finally, we focus on the regime shifts which have taken place in the course of the crises and we discuss the implications of these recent developments for the world economy. Terms of use: Documents in

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“…Financialization can be seen as an aspect of a neoliberal growth model that replaced the Keynesian growth model after 1980 (Hein et al, 2015;Palley, 2015). Various authors thus characterize this phase of capitalism as a finance-led growth regime, finance-dominated capitalism or money manager capitalism (Minsky's expression).…”

Section: A Specific Phase Of Capitalismmentioning

confidence: 99%

“…Various authors thus characterize this phase of capitalism as a finance-led growth regime, finance-dominated capitalism or money manager capitalism (Minsky's expression). Hein et al (2015) highlight that finance-dominated capitalism takes different forms in various countries. The emerging system was characterized by wage stagnation and widening income inequality that created a growing structural demand shortage because wages could no longer be the engine of demand growth.…”

Section: A Specific Phase Of Capitalismmentioning

confidence: 99%

“…Most heterodox accounts of the long-term development of capitalism agree that the capitalist system, nationally and globally, went through a process of qualitative change from one phase to another during the 1970s. Hein et al (2015) summarize and compare different accounts from the French Regulation School, the American Social Structures of Accumulation approach, various Post-Keynesian authors and Minsky's special perspective. These accounts apply different concepts and emphasize different dynamics, but Hein et al argue that they do not differ fundamentally and in many ways complement each other.…”

Section: A Specific Phase Of Capitalismmentioning

confidence: 99%

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Sustainability and the Governance of the Financial System: What role for full reserve banking?

Røpke

2017

Env Pol Gov

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The financial crisis demonstrated the importance of money and finance for the key concerns of ecological economics: inequality, wellbeing and the conditions for sustainability transitions. To cope with the combined challenge of economic and environmental crises, one of the most popular governance proposals within the ecological economics community is to introduce full reserve banking, where retail banks are required to fully back demand deposits with reserves of government-issued money. Banks can have separate investment activities where they lend funds from time deposits and equity capital, but they are no longer allowed to create new money. In principle, money creation is left to the state and the central bank. Proponents argue that such a system would increase economic stability, remove the undue profits that banks earn due to money creation and make this money available for social purposes instead. However, the idea has met substantial criticism from Post-Keynesians, who are seen as natural allies of ecological economics. The purpose of this paper is to explore the usefulness of the proposal as a response to the combined challenge of governing economic and environmental crises. First, the roots of the present economic crisis are sketched out, and the key ecological economic concerns related to the crisis are outlined. Then, the main arguments in the debate on full reserve banking are explored, concluding that an intermediate position that combines tough restrictions on finance with increased public money creation is a better option. Finally, the discussion is put into a broader perspective.

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The transition towards finance-dominated capitalism: French Regulation School, Social Structures of Accumulation and post-Keynesian approaches compared

Cited by 19 publications

References 57 publications

Post-Keynesian macroeconomics since the mid 1990s: main developments

Post-Keynesian macroeconomics since the mid 1990s: main developments

Financialisation and the financial and economic crises: theoretical framework and empirical analysis for 15 countries

Sustainability and the Governance of the Financial System: What role for full reserve banking?

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