Political Economy and Global Capitalism: The 21st Century, Present and Future
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This volume brings together original and timely writings by internationally renowned scholars that reflect on the current trajectories of global capitalism and, in the light of these, consider likely, possible or desirable futures. It offers theory-informed writing that contextualizes empirical research on current world-historic events and trends with an eye towards realizing a future of human, social and economic betterment.
spiralling military commitments abroad, especially during the Vietnam War. They fuelled US inflation and flooded the world economy with dollars. Although these outflows 94 POLITICAL ECONOMY AND GLOBAL CAPITALISM supported the development of finance, they also impaired US capacity to guarantee the convertibility of dollars into gold at the official rate of US$35 per ounce. More immediately, US deficits exported inflation to surplus countries, especially West Germany, Japan and Switzerland. The
intermediation in the financing of the state. The transfer of the main levers of accumulation to (international) capital, mediated by (US-led) financial institutions, and regulated by (US-controlled) international organizations, especially the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), has established the material basis of neo-liberalism.36 In this system of accumulation, stable capital flows are essential to close both the balance of payments and finance
policy discipline upon the state, industrial capital, financial institutions and the working class. This is not only regressive, it is also misguided. First, it presumes that the independent central bank can deliver the IT if it really wants to. This simply revamps the discredited monetarist claim that money supply targeting is feasible and sufficient to control the rate of inflation. Second, it ignores the real dilemmas involved in central bank policy, especially the potential conflicts between
(2004; 2005). See, for example, Brenner (2002). See, for example, Panitch (1976). For a detailed study of finance under neo-liberalism, see Duménil and Lévy (2004, esp. chs. 13, 23). See Munck (2005). See Laidler (1993) and Screpanti and Zamagni (1993, ch. 9). MONETARY POLICY IN THE NEO-LIBERAL TRANSITION 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 115 ‘[I]f one believes that, in the long-run, there is no trade-off between inflation and
same class, background and perspective, revolutionary transformations did not settle (either in advance or as in the Soviet experience) the matter of how ‘bourgeois specialists’ were to be integrated into a changed politico-economic order. Van Pijl then discusses how neo-liberal capitalism in the last decades of the twentieth century has involved a struggle within the managerial/technical cadre that resulted in the defeat of a social-democratic tendency by a radicalized neo-liberal strand that