What is it about?
How have we arrived at a position where equity trading markets rule the roost in capitalism and so much economic theory no longer seems to work? Must we have regular crashes? And why are they so unpredictable? Was Hayek right when, in his Nobel Prize lecture, he said of economists: 'As a profession, we have made a mess of things'? Read on!
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Why is it important?
Frustration with contemporary economics has caused much debate about the differences between Classical and Neoclassical approaches. The debate has been vague, become stale and has solved nothing. I highlight a different divide: that between the productive primary markets of the economy and the unproductive secondary markets of the financial sector. In primary markets, useful goods and services are bought and sold. In secondary markets, financial instruments are traded back and forth for financial advantage. Both may be 'free markets', but are completely different in their economic impact. This approach exposes many flaws in the contemporary system of financialized capitalism. It also allows us to see that there are alternative capitalist models that circumvent the flaws.
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This page is a summary of: Financializing capitalism: 400 Years of equity market development, Competition & Change, July 2019, SAGE Publications, DOI: 10.1177/1024529419858337.
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