Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/242972
Authors: 
McMahon, James
Year of Publication: 
2021
Citation: 
[Journal:] Review of Capital as Power [Volume:] 2 [Issue:] 1 [Year:] 2021 [Pages:] 30-70
Publisher: 
Forum on Capital As Power - Toward a New Cosmology of Capitalism, s.l.
Abstract: 
This article responds to Baines and Hager’s recent critique of the capital-as-power model of the stock market. Proposed by Bichler and Nitzan, this model seeks to explain how financial crises are tied to the concept of ‘systemic fear’. Bichler and Nitzan tested their initial model on US data, finding a strong correlation between capitalist power (as they measure it) and systemic fear. However, when Baines and Hager extended the model to four other countries, they found conflicting results. I respond to Baines and Hager, and argue that they were perhaps too quick to dismiss systemic fear as a useful concept. I re-examine systemic fear in twelve countries, and find that (with a few exceptions), it correlates with capitalist power. These results suggest that the notion of ‘systemic fear’ is useful for studying both capitalist crisis and national diversity in capitalist development.
Subjects: 
capitalization
capital as power
sabotage
stock market
systemic fear
JEL: 
P16
G1
g12
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/4.0/
Document Type: 
Article
Document Version: 
Published Version

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