Dominant Finance and Stagnant Economies

Financialization in the world economy has led to massive accumulation as well as concentration of financial assets providing sources of rentier income which has been much higher than those obtainable from physical assets. The present volume attempts to analyse the pattern of financial dominance in the world economy with its links to the systemic crisis. The analysis rests on the theoretical perspectives underlying the Keynesian and the Minskian theoretical framework . This makes the present study of global finance offer a critique of the mainstream neo-liberal doctrine and policies. The volume consists of a collection of essays, some of which were previously published in journals and edited volumes, and a number of recent papers which are as yet unpublished. These cover a gamut of themes ranging from the paradoxes of loan tying as well as an imminent realisation in lender countries , uncertainty and speculation in commodity markets, the recent global crisis, entry and rise of China in global finance, macro-economic constraints faced by emerging economies like India and China in following a path of autonomous economic policy and inclinations on part of corporates to invest in the high-risk high-return financial assets rather than in assets which generate real activity, output and employment. The book also dwells on the hegemonic order of the international financial institutions with their iniquitous as well as destabilizing role in the world economy. Spanning the themes as above, the book very successfully demolishes the mainstream 'efficient market' doctrine and its failure in terms of policies, in the advanced as well as in the developing economies.ST OF TABLES AND FIGURES ; PREFACE ; INTRODUCTION ; SECTION I AGE OF OFFICIAL CAPITAL FLOWS AND DEVELOPING COUNTRIES ; CHAPTER 1 TIED LOANS AND LIQUIDITY CONSTRAINT ; CHAPTER 2 DIMENSIONS OF EXTERNAL ECONOMIC TRANSACTIONS ; SECTION II GLOBAL CAPITAL FLOWS: PARADOXES, CONSTRAINTS AND ASYMMETRIES ; CHAPTER 3 SWINGS AND PARADOXES IN INTERNATIONAL CAPITAL MARKETS: A THEORETICAL NOTE ; CHAPTER 4 INTERNATIONAL CAPITAL FLOWS AND GLOBAL DEMAND ; CHAPTER 5 FINANCIAL OLIGARCHY IN CONTEMPORARY CAPITALISM ; SECTION III DEREGULATED GLOBAL FINANCE ; CHAPTER 6 GLOBAL FINANCE: ON THE MOVE TO STOCK MARKET CAPITALISM ; CHAPTER 7 THE MELT-DOWN OF THE GLOBAL ECONOMY: A KEYNES-MINSKY EPISODE ; CHAPTER 8 THE GLOBAL CRISIS AND THE REMEDIAL ACTIONS: A NON-MAINSTREAM PERSPECTIVE ; CHAPTER 9 UNCERTAINTY AND SPECULATION IN THE KEYNESIAN TRADITION: RELEVANCE FOR COMMODITY MARKETS ; CHAPTER 10 DOES THE CURRENT CRISIS REMIND US OF THE GREAT DEPRESSION? ; SECTION IV DEREGULATED FINANCE IN DEVELOPING ECONOMIES ; CHAPTER 11 ECONOMIC TURMOIL IN ASIA: A REINTERPRETATION ; CHAPTER 12 CHINA IN THE BULL SHOP: DEALING WITH FINANCE AFTER THE WTO ; CHAPTER 13 CHINA IN GLOBAL ECONOMY: ENCOUNTERING THE SYSTEMIC RISKS ; CHAPTER 14 MANAGING FINANCIAL FLOWS AT COST OF NATIONAL AUTONOMY: CHINA AND INDIA ; CHAPTER 15 MANAGING FINANCE IN EMERGING ECONOMIES: THE CASE OF INDIA ; CHAPTER 16 DEREGULATED FINANCE: SOME CONCERNS FOR INDIA'S INDUSTRY AND LABOUR ; INDEX ; ABOUT THE AUTHOR