chapter  6
20 Pages

The Global Capitalist Crisis and Latin America

ByHenry Veltmeyer

This chapter provides a critical perspective on the current global capitalist crisis from the standpoint of its dynamics in Latin America. The past two years has seen the publication of various books and articles, many of which converge on a common theme: the lack of financial regulation and the resulting acceleration of irresponsible speculation. The general argument advanced in these publications is that the global economic crisis, precipitated by the sub-prime debacle, together with misguided policies, has allowed financial speculation to proceed unchecked, giving unscrupulous lenders and traders free rein to exploit the lack of regulatory oversight. Essentially, it is argued that the crisis is neither systemic nor even structural but financial, and thus correctable with the right monetary policy fix, the construction of a new and more effective financial architecture and global governance.