Thorstein Veblen on credit and economic crises

Davanzati, Guglielmo Forges; Pacella, Andrea

doi:10.1093/cje/beu002

Cited by 15 publications

(11 citation statements)

References 24 publications

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“…This dissent to the popular optimism argument could be historically traced to Thomas Veblen (1923) who, based on the experiences of the US and Western Europe in the 19th century, argued that the notion of FD propelling real investment and employment, was merely a myth propagated by political economists. Veblen was extremely appalled by the development of financial markets and the growth in credit that developed Western countries were going through in the second part of the 19th century, such that he attributed the escalating income inequality, poor rate of economic growth, and growing fragility in these economies to this phase of FD (Argitis 2016;Davanzati and Pacella 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Interplay between Finance and Institutions in the Development Process of the Industrial Sector: Evidence from South Africa

Hassan

Meyer

2022

JRFM

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Despite the importance of the financial system and quality of institutions to the attainment of economic development goals, the mediating role of institutions in how finance influences the development of the industrial sector across countries has not been given adequate attention in the literature. Therefore, this study assessed the moderating role of institutions in the relationship between finance and industrial development of South Africa for the period 1984–2021. To evaluate the long-run relationship among the variables, the combined cointegration test of Bayer and Hanck was used, while fully modified least squares, dynamic least squares and canonical cointegrating regression were employed to estimate elasticity relationships. The findings of the study revealed that finance impacts industrial development positively in South Africa, but this positive impact is diminished by the quality of institutions in the country. Therefore, the financial system in South Africa needs to be rooted in a high-quality institutional structure for its beneficial impact on the industrial sector to be reinforced for sustainable development. Moreover, there is a need for more reforms in the financial system to promote efficiency that would translate growth in finance into more inclusive growth gains in the industrial sector.

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Section: Literature Reviewmentioning

confidence: 99%

Interplay between Finance and Institutions in the Development Process of the Industrial Sector: Evidence from South Africa

Hassan

Meyer

2022

JRFM

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“…Así, se hace más evidente por qué los historiadores del pensamiento económico han sugerido un "parecido-familiar" entre la teoría de Veblen con diferentes autores como Keynes, Marx, Mitchell, Irving Fisher, Henry Simons y Minsky [Davanzati & Pacella, 2014: 1044. De igual forma, Dimitri Papadimitriou & Randall económico-sociales negativos de la pandemia, "en el curso de los meses, la inyección de créditos otorgados por los bancos centrales está aumentando de manera generalizada el endeudamiento que ante la Gran Depresión del inicio de la presente década impactará en las carteras vencidas del sistema bancario" [Girón, 2020a: 39].…”

Section: Reflexiones Finalesunclassified

Ruta de escape: pandemia, turbulencia financiera y alternativas de política económica

2022

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“…У Веблена кредит «имеет решающее значение для его описания бизнес-цикла и кризисной фазы, которая ведет к ликвидации» (Wray, 2007: 621). Это дает основание современным исследователям интерпретировать взгляды Веблена таким образом, что банки являются важнейшей структурой в экономической эволюции, а «банковская политика является основным фактором в генерации кризисов» (Davanzati, Pacella, 2014: 1043.…”

Section: теоретические основания и определение терминовunclassified

New «Old» Institutionalisation of Money Circulation in Post-Soviet Russia

Kirdina-Chandler¹

2021

JIS

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For the study of the institutionalization of money circulation in post-Soviet Russia, an institutional-evolutionary approach was used, based on the ideas of Thorstein B. Veblen and Joseph A. Schumpeter, as well as John R. Commons. The object of the analysis was the institutional structures of money circulation, which are the most significant from the public interest point of view. The paper compares the results of the institutionalisation of money circulation in the USSR and post-Soviet Russia. Particular attention is paid to the analysis of transitional periods. In transitional periods there was a rejection, filtration, and correction of institutional forms of money circulation in terms of their compliance with public goals to develop the country's socio-economic system. The following features of the institutional design of the Soviet model are identified: first, the presence of a single-link, a hierarchical, centralized banking system with the concentration of the entire payment turnover system in the State Bank of the USSR; second, the existence of a "three-circuit system" of money turnover with cash for servicing the turnover of consumer goods, non-cash money for industrial consumption (investment) and convertible rubles for international export-import payments; third, the division of money turnover was supported by the creation of special banking institutions for servicing each of them, controlled by the State Bank of the USSR - the "State Labour Savings Banks", "Stroybank" and "Vneshtorgbank", respectively; fourth, the institutions of money circulation were an internal element of the system of the planned national economy of the USSR and were organically integrated into it. The institutionalisation of money circulation in post-Soviet Russia is characterized by the presence of new (albeit previously represented in the history of our country) institutions and has the following features: first, a two-tier banking system, the upper level of which is represented by the Central Bank of Russia, and the lower level is represented by banks and non-banking credit institutions; second, organizations of various forms of ownership operate in the sphere of money circulation, while state forms of ownership are playing an increasingly significant role; third, there is a stock exchange where stocks, bonds, currencies and other instruments of the money market are traded. The official exchange rate set by the Central Bank of Russia is based on stock quotes; fourth, the Federal Treasury operates to mediate the movement of budgetary funds. An additional element of control over their use is the introduction of "treasury accounts", to which budget funds are transferred and from where they are used for the implementation of state development programs. As a result, one can see that the process of institutional renewal of money circulation in post-Soviet Russia is associated with the return to a number of institutions characteristic of pre-revolutionary and Soviet history. Therefore we can talk about a new "old" institutionalisation of money circulation in post-Soviet Russia. The main vector of changes in recent years is associated with the increasing recognition of the social significance of this sphere, serving the public interest. A forecast has been made that state control over the processes of money circulation in modern Russia is likely to increase.

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Thorstein Veblen on credit and economic crises

Cited by 15 publications

References 24 publications

Interplay between Finance and Institutions in the Development Process of the Industrial Sector: Evidence from South Africa

Interplay between Finance and Institutions in the Development Process of the Industrial Sector: Evidence from South Africa

Ruta de escape: pandemia, turbulencia financiera y alternativas de política económica

New «Old» Institutionalisation of Money Circulation in Post-Soviet Russia

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