Oil and the Eurocurrency Market: Out of the Frying Pan and Into the Fire

Martin Landsberg and Martin Landsberg
Additional contact information
Martin Landsberg: 156 W. 16th Street Eugene, Ore. 97401

Review of Radical Political Economics, 1976, vol. 8, issue 4, 42-55

Abstract: In four years the "oil crisis" has seemingly been rendered harm less. U.S. economists offer praises to the flexibility of capitalism in meeting any and all crises and point to the economic recovery of global capitalism as proof. By carefully analyzing the role international money markets (primarily the Euromarket) played in "solving" the oil crisis, however, this paper comes to quite the opposite conclusion. It appears, in fact, that global capitalism has created even greater and more dangerous contradictions which soon must be faced. The operation of the Euromarket in financing the necessary oil-based dollar flows has created financial instability in all major capital markets. If these markets continue to finance new growth, the result can only be greater instability and eventual economic collapse. The only other choice is an immediate reduction in financial intermediation, but this will bring about the end of the present economic upturn. In either case, without major structural changes the global capitalist system faces a profound crisis — one for which capitalists will have no easy answer.

Date: 1976
References: Add references at CitEc
Citations:

Downloads: (external link)
http://rrp.sagepub.com/content/8/4/42.abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:8:y:1976:i:4:p:42-55

Access Statistics for this article

More articles in Review of Radical Political Economics from Union for Radical Political Economics
Bibliographic data for series maintained by SAGE Publications ().