"“FINANCIALIZATION” OF CAPITALISM AND ITS RECENT EFFECTS ON LATIN AMERICAN EMERGENT ECONOMIES"

Carlos Américo Leite Moreira, Agamenon Tavares de Almeida

Research output: Contribution to journalArticle

Abstract

"This article intends to raise a discussion concerning the role and importance of financial
dominance as a component that characterizes the existing regime of capital accumulation of the
world economy. This approach has scarcely been included in the analysis of today’s economic
crisis that is impacting the world economy. The article also intends to show how the speculative
financing of big enterprises has contributed to the crisis of the regime of financial dominance
accumulation. A basic premise raised in this analysis is that large conglomerates try, at all costs,
to offer expressive returns to their shareholders in exchange for financial resources granted by
economic agents in the stock exchange markets—in other words, returns generated by “fictitious
capital.” Many emergent economies became loci for patrimonial and financial valorization. In
Latin America, for example, the financial dominance accumulation regime is based mainly on
the continuous growth of the public securities debt, backed by extremely high interest rates
on government securities. It has resulted in an increase in the inflows of short-term capitals,
which favored the appreciation of their national currencies. As a consequence, the Latin American
emergent economies are experiencing a return to balance of payments deficits. In short, an
increase in dependency and economic and political domination by the internationalized capital."
Original languageEnglish
Pages (from-to)500-516
Number of pages17
JournalWorld Review of Political Economy
Volume1
Issue number3
Publication statusPublished - 2010
Externally publishedYes

Fingerprint

Capitalism
Financialization
Conglomerate
Shareholders
Currency
Stock exchange
Economics
Domination
World economy
Government
Balance of payments
Financial resources
Costs
Capital accumulation
Debt

Keywords

  • financialization
  • capitalism
  • Latin American
  • emergent economies

Cite this

"“FINANCIALIZATION” OF CAPITALISM AND ITS RECENT EFFECTS ON LATIN AMERICAN EMERGENT ECONOMIES". / Leite Moreira, Carlos Américo ; Almeida, Agamenon Tavares de .

In: World Review of Political Economy, Vol. 1, No. 3, 2010, p. 500-516.

Research output: Contribution to journalArticle

Leite Moreira, Carlos Américo ; Almeida, Agamenon Tavares de . / "“FINANCIALIZATION” OF CAPITALISM AND ITS RECENT EFFECTS ON LATIN AMERICAN EMERGENT ECONOMIES". In: World Review of Political Economy. 2010 ; Vol. 1, No. 3. pp. 500-516.
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