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Author Archive | Prabhat Patnaik

A Perspective on the Growth Process in India and China

I It is possible to argue that the growth rate figures for both India and China are exaggerated.  But, we shall proceed by accepting them as correct.  The inequalities in both economies however have increased dramatically during this very phase of extraordinarily high growth, to a point where substantial segments of the population, particularly, but […]

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Reflections on the Left

Perhaps the most significant feature of the recent Indian election is the loss suffered by the Left.  The BJP’s defeat was more or less anticipated, except by the psephologists, as was some loss by the Left; but the actual extent of the Left’s loss has been quite staggering.  True, its vote share has fallen only […]

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Finance Capital and Fiscal Deficits

One of the central paradoxes in economic theory relates to the hostility that financial interests in a modern capitalist economy systematically display towards any policy of enlarged State expenditure financed by borrowing, even though such expenditure increases capitalists’ profits and wealth. Let us suppose that the government undertakes a larger borrowing-financed public expenditure programme, and […]

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The Global Financial Community

Lenin in Imperialism had talked about a financial oligarchy presiding over vast amounts of money capital through its control over banks and using this capital for diverse purposes, such as industry; speculation; real estate business; and buying bonds, including of foreign governments.  The finance capital that Lenin was talking about belonged to particular powerful nations; […]

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Excessive Liquidity Preference

Any recession by definition is associated with an excessive liquidity preference.  An ex ante excess supply of goods and services, i.e. the demand for goods and services falling short of the base output at the base prices corresponding to that output, which is what a recession is, must be associated with an ex ante excess […]

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Socialism and the Peasantry

One of the greatest insights of Karl Marx was his perception of the capitalist system as a self-acting, self-driven and “spontaneous” order.  Far from being a malleable system, where intervention by the State could be used for bringing about basic changes in the mode of its functioning, in which case of course the need to […]

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The Crisis of the Capitalist World

The current crisis of the capitalist world is commonly explained as resulting from “a lack of government regulation of the financial sector”, “insufficient supervision allowing reckless lending by financial institutions”, “the unbridled greed of the financiers”, in short a series of mistakes and aberrations.  These have contributed to a “systems failure” in the words of […]

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