An Essay on the Crisis of Capitalism – a la Marx? Korkut Erturk

[Working Paper No. 02/2012] The paper argues that a crisis of collective agency is at the root of the global economic crisis we face today. The secret of prosperous capitalism, the so-called golden age, was the ability of the state to uniformly impose welfare-enhancing market restrictions that made it possible to invest in common pool resources. This ability has waned during the neoliberal era and the result has been a resurgence of forces of competition – what Marx called the law of value – generating long-term collective costs that go increasingly unaddressed. This is reminiscent of classical capitalism's main weakness…

Recycling Global Imbalances Korkut Ertürk

Is the United States at long last getting serious about global imbalances, or are we risking currency wars that can end in unmitigated disaster for all? No one knows, though tension is on the rise with China. This much is certain: any advantage from a lower currency is a zero-sum gain for the world economy as a whole. At best, it is about how to distribute the pie, not about growing it. Until recently, many economists were not sure if global imbalances were something to be worried about at all. If markets always worked efficiently as most economists had accepted…

What is Minsky All About, Anyway? Korkut Ertürk and Gökcer Özgür

The current financial crisis has been interpreted as the fulfillment of Hyman P. Minsky’s predictions by many, while others have opposed this suggestion. In this paper, the author tries to sketch uot an alternative understanding of Minsky as an evolving research agenda. He arugues that if Minskyan work means solely his own writings and their restatement, then, those who refute this current crisis as Minsky’e prediction are probably right – one cannot help but focus on what is different about the current crisis. But, if instead Minksyan refers to an evolving literature that emanate from but transcend his work, their…