A THEORETICAL FOUNDATION FOR UNDERSTANDING FINANCIAL CRISES

Abstract

Ricardo Carneiro's article analyzes financialization, a phenomenon characterized by the growing dominance of finance over productive dynamics. Through a theoretical analysis based on Marx, Keynes, and Minsky, Carneiro explores concepts such as fictitious capital, liquidity preference under uncertainty, and financial instability. The author highlights that fictitious capital, which is not directly tied to the production process, is a fundamental driver of financial bubbles and the disconnection between financial accumulation and real production. Keynes's concept of liquidity preference and Minsky's hypothesis of financial instability illustrate how the pursuit of financial security can contribute to speculation and hinder sustainable economic growth. Carneiro argues that instability is not an exception but an inherent feature of financialized capitalism, warning of the risks posed by this speculative logic. By integrating classical theories, the article provides a solid theoretical foundation to understand financialization as a structural phenomenon essential to understanding financial crises and contemporary economic dynamics.