Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/196607
Authors: 
Baines, Joseph
Hager, Sandy Brian
Year of Publication: 
2019
Citation: 
[Journal:] New Political Economy [ISSN:] 1469-9923 [Volume:] [Year:] 2019 [Issue:] Online First
Abstract: 
The relationship between inequality and financial instability has become a thriving topic of research in heterodox political economy. This article offers the first critical engagement with one framework within this wider literature: the Capital as Power (CasP) model of the stock market developed by Shimshon Bichler and Jonathan Nitzan. Specifically, we extend the CasP model to other advanced capitalist countries, including Germany, France, the United Kingdom, and Japan. Our findings affirm the core prediction of the CasP model, showing that unequal power relations reliably predict future stock market performance. Yet when it comes to the CasP model’s explanation of why power relations predict stock market returns, our findings are more ambiguous. We find little empirical support for the claims that capitalist power is dialectically intertwined with systemic fear, and that systemic fear and capitalised power are mediated through strategic sabotage. The main lesson of our analysis is that any model of the stock market must be attentive to the geographical unevenness and continued national diversity in capitalist development.
Subjects: 
capital as power
comparative capitalisms
financial crisis
inequality
stock market
JEL: 
P16
G01
D3
G17
URL of the first edition: 
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Manuscript Version (Preprint)
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