Financial Crisis, Financialization and Comparative Capitalism
Political Science Goethe University Frankfurt Frankfurt/Main, Germany
Political Science Goethe-University Frankfurt Frankfurt/Main, Germany
The paper explains the emergence and the consequences of the crisis by drawing on established theories of International Political Economy. It uses the ?Financialization?-concept for an inter-temporal study and the ?Comparative Capitalism? research program for an inter-national perspective. In an inter-temporal perspective, the contribution demonstrates that both the emergence and the extent of the crisis are impossible to understand without taking due notice of the fundamental processes of company and household financialization during the last three decades. Financialization is defined as a process whereby the share of the financial sector within profits and household income permanently increases, to the detriment of the share of the production sector. In an inter-national perspective, the article explains the more severe repercussions of the crisis within Anglo-Saxon economies by pointing towards the more important role of financial markets within these liberal economies, whereas the classical ?Hausbanken? within coordinated economies have been more moderately affected.