Money and Credit Circuits, Cycles and Crises

Phillip Anthony O’Hara
Additional contact information
Phillip Anthony O’Hara: Global Political Economy Research Unit

Chapter 9 in Principles of Institutional and Evolutionary Political Economy, 2022, pp 277-305 from Springer

Abstract: Abstract This chapter examines the nature of money, credit and finance under capitalism, paying special attention to the principle of innovation, involving IEPE scholars seeking to understand and change the system for the better, and the principle of policy/governance where they try and improve the theoretical tools of policy-making. The principle of historical specificity is used to situate money and finance in history since the political revolutions of the late 1700s, industrial revolutions of the 1800s, and the recent series of financial crises during the 1980s–2020s. We study the circuits, instabilities and crises that beset the major nations, especially over the past 50 years, and illustrate through the principle of contradiction how crises arose and forces leading to institutional-habitual changes generating phases of evolution. Then we scrutinize the principle of uncertainty through an analysis of money, credit and finance in the circuit of social capital, endogenous money and credit, and the financial instability hypothesis (FIH). Hyman Minsky’s FIH is explicitly related to the most intense period of financial instability and crises experienced by nations and regions, during the 1980s–2020s. We go on to examine reforms of the international financial architecture, especially in the context of the principle of hegemony and uneven development, vis-à-vis the role of the US dollar, plus the major tenets of modern monetary theory (MMT) as well as critics of this theory.

Keywords: Principles & concepts; Phases of financial capital; Money; credit & finance; Circuit of money capital; Endogenous money & credit; Financial instability hypothesis; Global money; Modern monetary theory; Fictitious capital; Financial crises (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sptchp:978-981-19-4158-0_9

Ordering information: This item can be ordered from
http://www.springer.com/9789811941580

DOI: 10.1007/978-981-19-4158-0_9

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().