Understanding Financial Crises

Cover
Half Title
Series Title
Title Page
Copyright Page
Contents
Figures
Tables
Acknowledgment
Introduction
1 Underconsumption, overproduction, and disproportionality
	1.1 Introduction
	1.2 Underconsumption theory from a historical perspective
	1.3 Underconsumption theories
		1.3.1 Marxist underconsumption theory
		1.3.2 Keynesian underconsumption theory
		1.3.3 Some empirical trends related to consumption during the global recession
	1.4 Overproduction theory
	1.5 Disproportionality theory
2 Debt accumulation
	2.1 Introduction
	2.2 Increasing debt
		2.2.1 Empirical trends in domestic debt
		2.2.2 Trends in sovereign debt
	2.3 Why and how can debt cause and deepen crises
		2.3.1 Why is debt critical
		2.3.2 Leverage and deleverage cycles
	2.4 Concluding remarks
3 Financialization and neoliberalism
	3.1 Introduction
	3.2 What is financialization
	3.3 The development of financialization
		3.3.1 A historical overview of financialization
		3.3.2 The developments in financial markets before the global recession
		3.3.3 Financial innovation
	3.4 Financialization process and its linkages with other economic developments
	3.5 Theoretical approaches to the links between financialization and crises
		3.5.1 Marxist tradition
		3.5.2 Post-Keynesian analysis
	3.6 Neoliberalism, deregulation, and financialization
		3.6.1 The rise of neoliberalism
		3.6.2 The relation between neoliberalism and financialization
	3.7 Financial deregulation
	3.8 Concluding remarks
4 Income inequality
	4.1 Introduction
	4.2 Evidence of increasing income inequality
		4.2.1 Trends in labor share
		4.2.2 Trends in personal income distribution
	4.3 Income inequalities before global depression and global recession
	4.4 Theoretical perspectives on links between income inequalities and crises
		4.4.1 Mainstream theories
		4.4.2 Non-mainstream theories
			4.4.2.1 Marxian crisis theories and the role of income inequality
			4.4.2.2 Post-Keynesian crisis theories and the role of income inequality
	4.5 Empirical analysis of linkages between income inequalitiesand crises
	4.6 Concluding remarks
5 The financial instability hypothesis
	5.1 Introduction
	5.2 Minsky’s financial instability hypothesis (FIH)
	5.3 The arguments of the FIH in the context of other approaches
	5.4 The financial fragility hypothesis and the global recession and past crises
	5.5 Minskian economic policies to prevent crises
	5.6 Concluding remarks
6 Tendency of rate of profit to fall
	6.1 Introduction
	6.2 The “tendency of the rate of profit to fall” hypothesis
	6.3 The profit squeeze argument
	6.4 Social structure of accumulation theory
	6.5 A theoretical debate on the validity of the tendency of the rate of profit to fall
	6.6 Empirical evidence on the falling rate of profit
	6.7 Concluding remarks
7 Human behavior
	7.1 Introduction
	7.2 Behavioral economics
	7.3 Neoclassical economics and behavioral economics
	7.4 Behavioral and psychological biases in economics
	7.5 Reinterpretation of financial crises: behavioral biases
	7.6 Empirical evidence: behavioral biases and crises
	7.7 Concluding remarks
8 Global imbalances and crises
	8.1 Introduction
	8.2 Global imbalances
		8.2.1 Historical trends in international trade and finance
		8.2.2 Global imbalances within the US and the rest of the world
		8.2.3 Imbalances within the Euro area
	8.3 Global imbalances: some theoretical explanations
	8.4 Global imbalances and two growth model approach
	8.5 A debate on global imbalances and the global crisis in 2007–2008
	8.6 Concluding remarks
Bibliography
Index