Publication Date

2009

Comments

Working Paper 197

Abstract

This paper investigates the 2007/2008 crisis which has been hailed as the most devastating (and complex) crisis of capitalism since the great depression of 1929. It further discusses the future trends in global capitalism with special emphasis on the expected future developments that are likely to be experienced in the world economy at large. The main argument of the paper is that the 2007/2008 crisis had not been the end result of a series of technical errors or ad hoc developments that occurred on their own, but should be regarded as the result of the systemic imbalances of capitalism in the last three decades. Thus, in order to evaluate the conditions of the global crisis more clearly, it is found pertinent that the underlying structural causes of the current crisis waves ought to be studied. The paper further follows the steps of the Marxian literature on crises, prominently of Rosa Luxemburg, pointing out to the necessity of a ‘corrective war’ in order to break with the “old” institutions, “old” technologies, and “old” methods of accumulation.

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