5. Neoclassical Economics, Marx and Keynes, and the Global Financial Crisis

This chapter shows that all the major capitalist countries in the world today are going through a prolonged phase of recession and seeks to explain this phenomenon. It observes that the recessions in these countries have followed formation and collapse of huge asset price bubbles, which precipitated deep economic crises. Carefully analysing available evidences, this chapter argues that these phenomena have been deliberately caused by the global financial capital (or giant capitalists) in connivance with the central banks and the governments of the countries where the crises have occurred. Keynesian stabilization measures have been deliberately designed in such a manner that recession persists at a desired level indefinitely following the crisis.