The Crisis of the World Finance System
Bibliographic Data
| ID | 9769862 |
|---|---|
| Authors | Elmar Altvater (corresponding author) |
| Year | 1987 |
| Volume | 492 |
| Issue | 1 |
| Pages | 36-48 |
| Publication date | 1987-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Annals of the American Academy of Political and Social Science (JOURNAL) |
| Journal identifiers | ISSN: 0002-7162 • E-ISSN: 1552-3349 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/0002716287492001004 |
| OpenAlex | W2120540827 |
| Language | EN |
| Citations received | 1 |
| References cited | 6 |
Unemployment has become a structural feature in all industrialized countries because a worldwide decline in the profit rate has reduced the speed of economic growth. This decline has been due mainly to the decreasing productivity of capital in the course of ever increasing capital intensity of production. The crisis is perpetuated by two additional factors: (1) the decay of the order-maintaining capability of the United States; and (2) the expansion of uncontrolled international credit, as funds were diverted from relatively unprofitable real investment to profitable financial investment. The need to service the debt, which was thus accumulated, keeps up the demand for fresh credits and prevents interest rates from becoming low enough not to discourage real investment. To overcome the crisis, debt would have to be written off, which in turn requires some form of consensus on how to distribute the resulting losses
Business · Debt · Debt crisis · Economic policy · Economics · Financial crisis · Financial system · Interest rate · Investment (military · Macroeconomics · Monetary economics · Productivity · Finance · Global Financial Crisis and Policies
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,03 |
| Citation span | 1988 - 1988 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |