Guðmundur Jónsson: Capitalism and crises
The current economic crisis has prompted a flurry of writing on the failings of capitalism as well as a critical re–evaluation of theories on economic crises and business cycles in general. The article examines two opposite theoretical camps on economic crises in capitalism, on the one hand assumptions and theoretical constructions within neo–classical economics on business cycles and on the other hand marxist or marxist–inspired theories on capitalist crises. The author argues that the current crisis has served as a reality check for those theories and that it has revealed the inability of both camps to offer convincing explanations of the nature and causes of capitalist crises.
Keywords: capitalism, economic crises, mainstream economics, marxist theory