Bubble, Bubble, how Much Trouble? Financial Markets, Capitalist Development and Capitalist Crises

Bibliographic Data

ID10488685
AuthorsJohn E Parsons (0000-0001-9493-4362, Sloan School of Management, Massachusetts Institute of Technology, corresponding author)
Year1988
Volume52
Issue3
Pages260-289
Publication date1988-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueScience & Society (JOURNAL)
Journal identifiersISSN: 0036-8237 • E-ISSN: 1943-2801
PublisherGuilford Press (PUBLISHER • US)
DOI10.1177/003682378805200302
OpenAlexW2399750220
LanguageEN
Citations received5
References cited8

HAS BECOME QUITE COMMON in recent years for left and liberal economists to denounce developments in the financial sphere. The growth in transactions on the option and futures exchanges and the recent unprecedented wave mergers are both the subject sharp criticism and polemic from the left. The financial sector is represented in many analyses as ballooning perilously. Paper transactions and more paper transactions are executed on Wall Street, all to the simple end profit for speculators but to no visible, functional, valuable end for the productive economy as a whole. This financial bubble is treated by some as a cause and by others as a symptom industrial decline in the United States. The seemingly fantastic and imposing escalation financial variables portends, according to this common wisdom, an inevitable collapse the burst the financial bubble with a consequently negative impact on the sphere real industrial production as well. The recent writings Harry Magdoff and Paul Sweezy (1983; 1985) on the financial aspects the current economic crisis in the United States will serve as our archetypal example this view the financial system a view I will dub here the ' 'bubble thesis. Among the variety issues regarding financial markets to which they give attention are the problems of a monetary system out control; the dangers the wild proliferation new financial institutions, instruments, and markets; and the current unchecked spread a speculative fever. . (emphases added). Magdoff and Sweezy underscore the relative independence the financial sphere from the productive sphere and use as one example the recent growth futures and option markets. The

Economic bubble · Economics · Financial crisis · Financial market · Financial system · Futures contract · Keynesian economics · Market economy · Speculation · Economic theories and models · Economic Theory and Institutions · Economic Theory and Policy · Finance

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