Rosa Luxemburg’s ‘Accumulation of Capital’: New Perspectives on Capitalist Development and US Hegemony

21 03 2012

By Ingo Schmidt

Mainstream economists and policy advisors have offered two explanations for the Wall Street crash in September 2008 and the concomitant world economic crisis. Monetarists saw the loose monetary policies of Alan Greenspan, Ben Bernanke and big government as the cause of speculative bubbles that eventually burst and crashes (Kindleberger 1978, Akerlof; Shiller 2009). The former suggest tight money and austerity, the latter reregulation as remedies for future crisis. As emergency measures for crisis containment, Monetarists prefer bank bailouts while New Keynesians advocate for fiscal stimulus. Both groups focus on financial markets, policy failures and the short term. A crucial implication of these foci is that political intervention of one sort or another, regardless of the fact that Monetarists wrap their preferred policies in the language of non‐intervention, can help to get the economy back on its long‐term growth path, which is determined by the growth of labour supply and technical progress (Barro, Sala‐i‐Martin 2003). READ THE ARTICLE >>



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