Globalization, Inequality and Financial Instability: Confronting the Marx, Keynes and Polanyi Problems in the Advanced Capitalist Economies

Political Economy Research Institute Working Paper No. 8

35 Pages Posted: 21 Feb 2003

See all articles by Robert Pollin

Robert Pollin

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics

Date Written: March 2000

Abstract

Three unique features of the contemporary period of globalization stand out in contrast with the epoch of integration early in the 20th century: the rise of manufacturing capacity in less-developed countries; the expansion in cross-border financial trading; and the fact that integration is occurring within the context of "big government" capitalism. Considering the effects of these transformations for the U.S. and Western Europe, the paper examines three fundamental issues: the expansion of the "reserve army of labor" (the "Marx problem"); increased financial instability and corresponding fluctuations in aggregate demand (the "Keynes problem"); and a diminishing capacity for governments to promote stability and norms of social solidarity (the "Polanyi problem").

JEL Classification: F02, E60

Suggested Citation

Pollin, Robert, Globalization, Inequality and Financial Instability: Confronting the Marx, Keynes and Polanyi Problems in the Advanced Capitalist Economies (March 2000). Political Economy Research Institute Working Paper No. 8, Available at SSRN: https://ssrn.com/abstract=333240 or http://dx.doi.org/10.2139/ssrn.333240

Robert Pollin (Contact Author)

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics ( email )

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