The critical factor of finance in the economics of the twentieth century

Abstract

BY AND LARGE, MAINSTREAM ECONOMICS HAS ADHERED TO TWO DOCTRINES CONCERNING THE WAY IN WHICH FINANCE OPERATE IN MODERN CAPITALIST ECONOMIES: EQUILIBRIUM FINACE AND REFLECTIVE FINANCE. IN THIS PAPER THE AUTHOR ANALYSE THE CRITICAL FINANCE, BY CONSTRAT WITH THIS DOCTRINES, AND SHOWS HOW FINACE SYSTEMATICALLY DISTURBS THE FUNCTIONING OF THE MODERN CAPITALIST ECONOMY AND AGGRAVATES FLUCTUATIONS IN THE REAL ECONOMY.