The Role of Financialization in Contemporary Political Economy: A Unified Heterodox Economic Analysis
| Název práce v češtině: | Role financializace v současné politické ekonomii: Unifikovaná heterodoxní ekonomická analýza |
|---|---|
| Název v anglickém jazyce: | The Role of Financialization in Contemporary Political Economy: A Unified Heterodox Economic Analysis |
| Klíčová slova: | Financializace, Politická ekonomie, Kapitalismus |
| Klíčová slova anglicky: | Financialization, Political Economy, Capitalism |
| Akademický rok vypsání: | 2022/2023 |
| Typ práce: | diplomová práce |
| Jazyk práce: | angličtina |
| Ústav: | Katedra politologie (23-KP) |
| Vedoucí / školitel: | doc. Ing. Vladimír Benáček, CSc. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 29.07.2023 |
| Datum zadání: | 29.07.2023 |
| Datum a čas obhajoby: | 27.01.2025 09:00 |
| Místo konání obhajoby: | Areál Jinonice, C520, 520, seminární místnost IPS |
| Datum odevzdání elektronické podoby: | 06.01.2025 |
| Datum proběhlé obhajoby: | 27.01.2025 |
| Oponenti: | PhDr. Miroslav Palanský, Ph.D. |
| Zásady pro vypracování |
| According to the FSV UK and IEPS standards |
| Seznam odborné literatury |
| Crotty, J. (2017). Capitalism, Macroeconomics and Reality: Understanding Globalization, Financialization, Competition and Crisis. Edward Elgar Publishing.
Dünhaupt, P. (2017). Financialization and the crises of capitalism. In The Routledge Handbook of Heterodox Economics (pp. 386-401). Routledge. Epstein, G. A. (Ed.). (2005). Financialization and the world economy. Edward Elgar Publishing. Foster, J. B. (2010). The financialization of accumulation. Monthly review, 62(5), 1-17. Goldstein, J. P. (2008). Heterodox Macroeconomics: Crotty's Integration of Keynes and Marx. Review of Radical Political Economics, 40(3), 300-307. Goldstein, J. P. (2009). Introduction: the political economy of financialization. Review of Radical Political Economics, 41(4), 453-457. Goldstein, J. P., & Hillard, M. G. (Eds.). (2009). Heterodox macroeconomics: Keynes, Marx and globalization. Routledge. Guttmann, R. (2016). Finance-led capitalism: shadow banking, re-regulation, and the future of global markets (p. 286). New York: Palgrave Macmillan. Hein, E. (2004). Money, credit and the interest rate in Marx's economic. On the similarities of Marx's monetary analysis to Post-Keynesian economics. Hiferding, R. (1981). Finance capital: A study in the latest phase of capitalist development. Routledge. Keen, S. (2011). Debunking economics: The naked emperor dethroned?. Zed Books Ltd.. Kotz, D. M. (2010). Financialization and neoliberalism. Relations of global power: Neoliberal order and disorder, 1(1), 1-18. Lapavitsas, C. (2011). Theorizing financialization. Work, employment and society, 25(4), 611-626. Lapavitsas, C. (2013). The financialization of capitalism:‘Profiting without producing’. City, 17(6), 792-805. Lavoie, M. (2022). Post-Keynesian economics: new foundations. Edward Elgar Publishing. Maaboudi, R., & Dare Nazari, Z. (2021). The Relation of Financialization with the Income Distribution and Economic Growth in Iran. Economics Research, 21(82), 49-90. Rahmanzadeh Haravi, M. (2017). A Look at the Political Economy of Iran. Akhtaran. [In Persian] Wolfson, M. H. (2009). Methodology and heterodox economics. In Heterodox Macroeconomics (pp. 74-85). Routledge. |
| Předběžná náplň práce |
| Topic characteristics / Research Question(s):
The focus of this study is on financialization and its role in shaping the dynamics of contemporary capitalist and emerging economies. The research aims to investigate how financialization impacts economic instability and how it contributes to the emergence of financial and economic crises. While many scholars have examined financialization, particularly in the aftermath of the financial crisis of 2008, the literature on this topic is less than three decades old and the term “financialization” was first employed in papers around the year 2000 (Goldstein, 2009). However, one of the most widely referenced definitions of financialization is given by Epstein (2005): “Financialization means the increasing role of financial motives, financial markets, financial actors and financial institutions in the operation of the domestic and international economies”. The study of financialization finds its origins in Hilferding's analysis of the role of finance capital in capitalist economies during the early 20th century (Hilferding, 1981). However, the emergence of financialization can be traced back to the late 70s and early 80s when the global economic system entered a new stage known by different terms such as 'neoliberalism’, ‘monopoly finance capitalism’, and ‘finance-led capitalism’ (Dünhaupt, 2016). This transformation has far-reaching consequences for both economic outcomes and societal structures, such as macro instability and economic crisis, rising income inequality, and altering social/power relations (Goldstein, 2009). Therefore, given the multifaceted nature of financialization and the theoretical weaknesses of the neoclassical economic framework, which was evident in the inability to analyze and predict the 1929 and 2008 financial crises (Keen, 2011), this study will adopt heterodox economic analysis to provide a broader understanding of financialization in a sociopolitical, historical and economic context. However, although heterodox economic theories —post-Keynesian, Marxian, and institutionalist— agree on some fundamental principles, there is a lack of agreement regarding essential behavioral relationships among them (Goldstein, 2008). Thus, this thesis, influenced by Goldstein and Crotty’s works, aims to employ heterodox economic frameworks and integrate them into an explanatory unity. The research will try to contribute to the current knowledge base on financialization by revealing the underlying mechanisms, drivers, and consequences of this phenomenon. It particularly focuses on role of financialization on the contemporary political economy of Iran as a case study, through the exploration of links between financialization, economic instability, and crises. Working hypotheses: 1. Hypothesis #1: There is a positive relationship between the increasing share of financial sector to GDP and the occurrence of economic instability. 2. Hypothesis #2: Financialization played a significant role in contributing to the emergence of stock market crash in 2020 in Iran. 3. Hypothesis #3: a unified heterodox economics framework, provides a comprehensive understanding of financialization, particularly in relation to economic instability and crises. Methodology: The unified heterodox approach creates a holistic and adaptable framework to use a mixed methodology of both qualitative and quantitative. The quantitative part of the research examines the relationship between the increasing share of the value added of the financial sector to the total value added of economy (GDP) and the occurrence of economic instability in Iran as an emerging economy. The qualitative aspect focuses on the stock market crash in 2020 in Iran to understand the consequences of financialization in that specific historical context and examines its role in causing the crisis. Outline: 1. Introduction 2. Literature Review 3. Theoretical Framework a. Overview of the integrated heterodox economics framework b. Integration of key elements from post-Keynesian, Marxian, and institutionalist theories 4. Research Methodology a. Research design b. Quantitative: Analysis of the ratio of the value added of the financial sector to GDP and economic instability in selected countries c. Qualitative: Analysis the case study of the 2020 stock market crash and its relation to financialization based on its historical dynamics and political economy analysis 5. Findings and Analysis 6. Conclusions 7. References / Bibliography |
| Předběžná náplň práce v anglickém jazyce |
| Topic characteristics / Research Question(s):
The focus of this study is on financialization and its role in shaping the dynamics of contemporary capitalist and emerging economies. The research aims to investigate how financialization impacts economic instability and how it contributes to the emergence of financial and economic crises. While many scholars have examined financialization, particularly in the aftermath of the financial crisis of 2008, the literature on this topic is less than three decades old and the term “financialization” was first employed in papers around the year 2000 (Goldstein, 2009). However, one of the most widely referenced definitions of financialization is given by Epstein (2005): “Financialization means the increasing role of financial motives, financial markets, financial actors and financial institutions in the operation of the domestic and international economies”. The study of financialization finds its origins in Hilferding's analysis of the role of finance capital in capitalist economies during the early 20th century (Hilferding, 1981). However, the emergence of financialization can be traced back to the late 70s and early 80s when the global economic system entered a new stage known by different terms such as 'neoliberalism’, ‘monopoly finance capitalism’, and ‘finance-led capitalism’ (Dünhaupt, 2016). This transformation has far-reaching consequences for both economic outcomes and societal structures, such as macro instability and economic crisis, rising income inequality, and altering social/power relations (Goldstein, 2009). Therefore, given the multifaceted nature of financialization and the theoretical weaknesses of the neoclassical economic framework, which was evident in the inability to analyze and predict the 1929 and 2008 financial crises (Keen, 2011), this study will adopt heterodox economic analysis to provide a broader understanding of financialization in a sociopolitical, historical and economic context. However, although heterodox economic theories —post-Keynesian, Marxian, and institutionalist— agree on some fundamental principles, there is a lack of agreement regarding essential behavioral relationships among them (Goldstein, 2008). Thus, this thesis, influenced by Goldstein and Crotty’s works, aims to employ heterodox economic frameworks and integrate them into an explanatory unity. The research will try to contribute to the current knowledge base on financialization by revealing the underlying mechanisms, drivers, and consequences of this phenomenon. It particularly focuses on role of financialization on the contemporary political economy of Iran as a case study, through the exploration of links between financialization, economic instability, and crises. Working hypotheses: 1. Hypothesis #1: There is a positive relationship between the increasing share of financial sector to GDP and the occurrence of economic instability. 2. Hypothesis #2: Financialization played a significant role in contributing to the emergence of stock market crash in 2020 in Iran. 3. Hypothesis #3: a unified heterodox economics framework, provides a comprehensive understanding of financialization, particularly in relation to economic instability and crises. Methodology: The unified heterodox approach creates a holistic and adaptable framework to use a mixed methodology of both qualitative and quantitative. The quantitative part of the research examines the relationship between the increasing share of the value added of the financial sector to the total value added of economy (GDP) and the occurrence of economic instability in Iran as an emerging economy. The qualitative aspect focuses on the stock market crash in 2020 in Iran to understand the consequences of financialization in that specific historical context and examines its role in causing the crisis. Outline: 1. Introduction 2. Literature Review 3. Theoretical Framework a. Overview of the integrated heterodox economics framework b. Integration of key elements from post-Keynesian, Marxian, and institutionalist theories 4. Research Methodology a. Research design b. Quantitative: Analysis of the ratio of the value added of the financial sector to GDP and economic instability in selected countries c. Qualitative: Analysis the case study of the 2020 stock market crash and its relation to financialization based on its historical dynamics and political economy analysis 5. Findings and Analysis 6. Conclusions 7. References / Bibliography |