The End of Finance: The Theory of Capital Market Inflation, Financial Derivatives, and Pension Fund CapitalismPsychology Press, 2000 - 160 pages This volume develops an original critique of the belief that the present era of finance, where finance markets dominate contemporary capitalist economies, represents the best possible way of organising economic affairs. In fact, it is argued, the ensuing economic instability and inefficiency create the preconditions for the end of the dominance of finance. The End of Finance develops a theory of capital market inflation rooted in the work of Veblen, Kalecki, Keynes and Minsky, demonstrating how it disinclines productive activity on the part of firms, provides only short-term conditions that are propitious for privatisation and distorts monetary policy in the long-term. The author examines the role of pension fund schemes and financial derivatives in transmitting capital market inflation and provides a nuanced analysis of the contradictory role they play in the financial system. Capital market inflation is also examined in its historical context and compared with past inflations, in particular the South Sea and Mississippi Bubbles, which spawned the first financial derivatives, and the first privatisations. This broad historical vision allows us to see these forms of inflation as temporary and provisional in character. |
Autres éditions - Tout afficher
Expressions et termes fréquents
actual prices analysis bonds boom brokers business cycle capital gains capital market inflation capitalist economies cash inflow changes Chapter common stock company’s competition contributions inflows corporate counterparty countries Crash debt Deutschmarks disintermediation Edward Elgar effect entrepreneurs equilibrium equity excess net inflow expected expenditure financial assets financial derivatives financial futures contracts financial futures markets financial inflows financial markets financial parameters firms fixed capital investment fund managers funded pension schemes futures contract hedging illiquidity income increase industrial and commercial inflow of funds interest rates investors issue J. M. Keynes John Maynard Keynes Keynes liquidity preference London long-term loss market liquidity maturity Minsky Mississippi Company monetary policy neo-classical operations outflow payments pension funds perfect competition peripheral markets Political Economy Ponzi finance portfolio privatization profits recession reduced rentiers returns rise risk saving sector securities markets selling short-term speculative stock market theory Toporowski trading University Press Veblen