 A theoretical framework for the analysis of the current global economic crisis: The financial market and the real economyÖzgün Sarımehmet Duman The Economic and Labour Relations Review, 2014, vol. 25, issue 2, 240-252 Abstract: This article argues that the current global economic crisis is an outcome of the excessive growth of the financial market over the real economy, and hence, of fictitious profits over real profits. In investigating the interrelation between the financial market and the real economy, it makes a comparative inquiry into two key assertions regarding economic crisis within Marxism: the tendency for the rate of profit to fall and overaccumulation of capital. Accepting the claim that economic crisis is inherent to capitalism, this article probes the role of countervailing tendencies in battling the tendency for the rate of profit to fall. While crisis is an outcome of both the extensive growth of fictitious profits and the tendency for the rate of profit to fall, the latter is identified as the fundamental reason for the current crisis. Labour market reforms that were implemented following the emergence of the economic crisis represent the resurgence of countervailing tendencies and are the most explicit evidence that the fundamental reason for the crisis resides in the real economy. Keywords: Current global economic crisis; fictitious profit; financial market; labour market reform; Marxist theories of crisis; overaccumulation; rate of profit; real economy; real profit (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:ecolab:v:25:y:2014:i:2:p:240-252 Access Statistics for this article More articles in The Economic and Labour Relations Review |
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