Credit, banks, competition and crisis

Abstract

This essay focuses its attention on six fundamental aspects of Rudolf Hilferding’s work. The first is the concept of finance capital itself, which in the book has multiple expressions and is central to the understanding of twentieth century capitalism. Subsequently, the article analyzes the role that Hilferding assigns to credit, interest rates and levels of investment in the overall performance of the economic process. In third place is the determination of the value of the individual business and of the publicly traded firm, and the strategic importance of the latter in financial markets, a theme central to the analysis of stock markets in present days. In fourth place is the influence of finance capital over market structures, through the limitations on free competition and the conformation of ologipolic structures, cartels and trusts. The functioning of the economic cycle and the crisis stage are analyzed in fourth and fifth place. The sixth and final element explores the exportation of capital and the struggle for economic spaces, both central themes in the context of the current financial crisis.