Recent events in the global financial markets and macro economies have served as a strong reminder for a need of a coherent theory of capitalist crisis and analysis. This book helps to fill the gap with well-grounded alternative articulations of the forces which move today's economic dynamics, how they interact and how ideas of foundational figures in economic theory can be used to make sense of the current predicament. The book presents a comprehensive collection of reflections on the origins, dynamics and implications of the interlinked crises of the U.S. and global economies.

The book is a thoughtful collaboration between Japanese heterodox economists of the Japan Society of Political Economy (JSPE) and non-Japanese scholars. It provides a unique immersion in different, sophisticated approaches to political economy and to the crisis. The book illustrates with the understanding of Marx's crisis theory and how it can serve as a powerful framework for analyzing the contemporary sub-prime world crisis. The book explains the subprime loan crisis as a crisis in a specific phase of the capitalist world system and concludes that it is a structural one which destroys the existing capital accumulation regime. It pays attention to structural changes and to how these changes beget profound and controversial consequences.

The result is a must-read - one which truly contributes to the resurgence of radical analyses of the political economy, free from the market optimism of the main-stream economics.

chapter |8 pages


part I|116 pages

Mechanisms of the 2008 crisis and their consequences

chapter 2|29 pages

The global financial crisis

The instability of U.S.-centered global capitalism

chapter 3|20 pages

Financialization and capitalist accumulation

A structural account of the crisis of 2007–09

chapter 4|16 pages

The global financial crisis as a world great depression

An analysis using Marxian economics

part II|101 pages

Regimes of capitalism

part III|93 pages

Global reconfiguration of capitalism

chapter 12|25 pages

Can the U.S. economy escape the law of gravity?

A Minsky– Kalecki approach to the crisis of neoliberalism

chapter 14|16 pages

East Asia's integration and structural shift

The shift from newly industrializing economies to potentially bigger market economies under the global economy 1

chapter 16|15 pages

Overconsumption, household debt, and dollar-privilege

The causes of the U.S. subprime crisis