Heterodox Analysis of Financial Crisis and Reform

Edited by Joëlle Leclaire, Associate Professor of Economics and Finance, Buffalo State College, Tae-Hee Jo, Assistant Professor of Economics and Finance, Buffalo State College, US and Co-editor of the Heterodox Economics Newsletter and Jane Knodell, Interim Provost, Senior Vice President and Full Professor of Economics, University of Vermont, US

• Contents:Foreword Robert PollinIntroduction Joëlle J. Leclaire, Tae-Hee Jo and Jane E. KnodellPART I: FINANCIAL CRISIS AND REFORM1. Difficulties in Reregulation of the Financial System After the CrisisJan Kregel2. Public Policy to Support Retirement: An Alternative to FinancializationYeva Nersisyan and L. Randall WrayPART II: HISTORY AND POLITICAL ECONOMY OF FINANCIAL CRISIS3. Those Who Forget the Past are Condemned to Repeat it: Lessons Learned from Past Financial Crises that were Ignored by the Deregulators of the Past 15 Years Robert W. Dimand and Robert H. Koehn4. Panics and Depressions: A Historical Analysis of 1907, 1929 and 2008William T. Ganley5. The Instability of Financial Markets: A Critique of Efficient Markets Theory Robert E. Prasch6. Sismondi, Marx and Veblen: Precursors of Keynes John F. HenryPART III: THEORETICAL ANALYSES OF FINANCIAL CRISIS7. Money Manager Capitalism, Financialization and Structural Forces Yan Liang8. Engineering Pyramid Ponzi Finance: The Evolution of Private Finance from 1970 to 2008 and Implications for Regulation Eric Tymoigne9. A Heterodox Microfoundation of Business Cycles Tae-Hee Jo10. Business Competition and the 2007–08 Financial Crisis: A Post Keynesian Approach Tuna Baskoy11. The Global Crisis and the Future of the Dollar: Toward Bretton Woods 3? Jörg Bibow12. Exchange Rate Regimes and the Impact of the Global Crisis on Emerging Economies Alfredo Castillo Polanco and Ted P. SchmidtIndex

‘The editors of this book have put together a compelling compendium of explanations and consequences of the global financial crisis. The essays are fairly homogeneous despite their apparent diversity, all providing a useful historical background. There is an obvious Institutionalist twist, with authors examining the changes in organizations and regulations that have accompanied the move towards financialization and money-manager capitalism. This analysis is often informed by the work of Hyman Minsky, pointing towards the inherent destabilizing forces of competition, as well as the dangers of deregulation, self-regulation, securitization, excess leverage, global imbalances, and the illusion of liquidity-enhancing and risk-reducing financial innovations.’