Subjects Archives: Economic Theory

When the Crash of 2008 hit Wall Street, European capitalism was thrown into disarray.  With the demise of the export-absorbing monster that was the US consumer market, what in 2003 Joseph Halevi and I called “The Global Minotaur” (see Monthly Review, Vol. 55), Europe not only lost a critical source of aggregate demand but also […]

Imagine a world ravaged by a plague, and suppose that the year’s Nobel Prize for Medicine is awarded to researchers whose whole career is based on the assumption that plagues are impossible.  The world would have been outraged.  That is precisely how we should feel about yesterday’s announcement of the recipients of the 2010 Nobel […]

  Historical Materialism has extended the deadline for proposal submissions to its special issue on the Middle East, conceived broadly to include: the Arab world from the Atlantic to the Gulf, Israel/Palestine, Iran and Turkey.  The new deadline for abstracts is the 10th of November 2010. HM is a Marxist journal, appearing four times a […]

  When Time magazine awarded Brazil’s President Lula the most influential world leader spot in its 2010 ranking of most influential people, Michael Moore, who wrote the excerpt on Lula, heralded the creation of the Bolsa Familia programme as well as the expansion of public education and health care.  These are important achievements, but one […]

  The article “Palestinian Economic Dependency on Israel,”1 published on the Alternative Information Center’s website on 23 September 2010, briefly mentioned official development assistance (ODA) to Palestinians.2  This article will elaborate more fully on foreign aid to the Palestinians, particularly in relation to the Israeli economy. Trade Deficit The Occupied Palestinian Territory (OPT) has an […]

Neoclassical economic models are based on the assumption that investment is financed from household savings.  Accordingly, capital accumulation will be maximized by policies aimed at increasing household savings rates and capital imports (“foreign savings”).  These models also predict that capital should flow from rich to poor countries, attracted by higher rates of return. However, facts […]

  Highlights: 2010: Palestinian economy far from recovery The Palestinian economy held back by: The enduring cost of Israeli military operation in Gaza The closure policy in the West Bank The siege of Gaza A weakened tradable goods sector and an eroded productive base are at the heart of the Palestinian development bottleneck. Rehabilitation of […]

  Excerpt: Household Debt and Credit Developments in 2010Q21 Aggregate consumer debt continued to decline in the second quarter, continuing its trend of the previous six quarters.  As of June 30, 2010, total consumer indebtedness was $11.7 trillion, a reduction of $812 billion (6.5%) from its peak level at the close of 2008Q3, and $178 […]

  Michael Lebowitz.  The Socialist Alternative: Real Human Development.  New York: Monthly Review Press, 2010.  Pp 192; $15.95 Only about ten or fifteen years ago, leftist theory was in a sorry state.  It seemed as if socialism had ceased to be a viable project with the fall of the Soviet Union.  Instead of an alternative […]

  9 July 2010 Today’s most e-mailed article on the New York Times website is “Biggest Defaulters on Mortgages Are the Rich” — in a nutshell, homeowners with loans over $1 million are more likely to have stopped paying their mortgages than those with more modest homes.  As law professor Brent White states, the wealthy […]

Under the Gold Standard the values of different currencies were fixed in terms of gold, which meant that the exchange rates between those currencies were fixed.  Exchange rate movements therefore could not be used to enlarge net exports and hence domestic employment.  At the same time governments were committed to the principle of “sound finance”, […]

There is a remarkable consensus among economists of all ideological and political persuasions — conservative, liberal, and radical — that capitalist economies must grow to be healthy, and that the key to growth lies in the capital accumulation or savings-and-investment process. Accepting this view, we have long been arguing in effect that capitalism, like living […]

  . . . Public debt levels as a share of GDP declined substantially in the Latin American region during the five years preceding the great global crisis of 2008 and 2009.  Data available for the largest seven countries in the region (LAC-7)1 show that the ratio of total public debt to GDP fell from […]

  Abstract: Few would dispute that sovereign defaults entail significant economic costs, including, most notably, important output losses.  However, most of the evidence supporting this conventional wisdom, based on annual observations, suffers from serious measurement and identification problems.  To address these drawbacks, we examine the impact of default on growth by looking at quarterly data […]

This essay was first published in Political Quarterly in 1943; it is reproduced here for non-profit educational purposes. A shorter version of this essay was published in The Last Phase in the Transformation of Capitalism (Monthly Review Press, 1972). I 1. A solid majority of economists is now of the opinion that, even in a […]

  The Fourth Strini Moodley Annual Memorial Lecture, University of KwaZulu-Natal, 13 May 2010 I In her historical novel, A Place of Greater Safety, which is played out against the backdrop of the Great French Revolution through an illuminating character analysis and synthesis of three of that revolution’s most prominent personalities, viz., Maximilien Robespierre, Georges […]

  You now describe yourself as a Marxist, with plans for a Marxist theory group in Hungary in addition to your ongoing work as a writer and political commentator from the Left.  Why Marx now?  In Central and Eastern Europe after 1989, Marxist ideas and theories were hard-pressed to survive their connection to state socialism […]

  The austerity measures imposed on Greek workers to reduce the deficits are nothing but a prelude of what may happen to the other European countries.  The Greek crisis demonstrates the divisions in the ruling class on the strategies to adopt. For the second time since December 2008, Greece is at the heart of politics […]

  The Brazilian expression “Greek Present” (Presente de Grego) means unwelcome gift, an obvious reference to the infamous Trojan Horse.  The current crisis in Greece might show that the euro was just one of those presents.  If the European Union (EU) does not provide sufficient resources to preclude not just a default, but also and […]

In Part 1 of this article we argued that Slavoj Žižek and Alain Badiou’s account of the foundation of Communist universalism in the event of Christianity signals a number of inconsistencies immanent to their respective ontologies (Coombs 2009).  For Žižek it appears difficult to reconcile his touted open interpretation of Hegel with the ontological significance […]