MONEY IN MARX: FROM VALUE-FORM ANALYSIS TO UNDERSTANDING OF MODERN CAPITALISM

by Sotiropoulos / Lapatsioras

The rise of finance makes capitalist exploitation more effective but heavier reliant on market liquidity. When the last evaporates, the whole setting quickly disintegrates. In other words, the demand for more discipline within capitalist power relations makes the economic milieu more vulnerable and fragile. Financial instability in our contemporary societies is the unavoidable trade-off. In times of distress, the valuation of risk changes (for many reasons related to class struggle), the prices of assets collateral go down, market participants cut credit lines and / or raise margin requirements to defend against counterparty risk when most needed, and virtually the entire process price down.
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