Economists debate long waves, 'financialization'

Participants from Belgium, Brazil, France, Germany, Mexico, the Netherlands and the Spanish state met here at the IIRE in April 1998 during the Economists' Seminar of the Ernest Mandel Study Centre. As usual, during the various discussions an intensive exchange took place of analyses, opinions, interpretations and ideas.

The first theme of the seminar was the current economic world situation. Reports were presented on the economic conjuncture and the social and economic consequences of the crisis in Asia for the region as well as for the world economy as a whole; on myths and realities of globalization; and on the European Economic and Monetary Union (EMU) and the coming introduction of the euro. While the debates showed a lot of common ground, there were also important disagreements, especially on the importance of and explanation for the growing weight of the financial sector in the world economy ('financialization').

The second major item of the seminar was where we are in the long waves of capitalist development. Especially for this discussion it was unfortunate that our US participant couldn't come, so that the thesis of some Marxists economists in the USA that at least this country is entering a new long wave of expansion could not be discussed. Participants analyzed and debated the importance of changes that have taken place in the accumulation regime (or productive order) since the mid-1970s and concluded that our next seminar will have to continue this debate.

Finally, a report was given on economic policies to reach full employment, based on recent French experiences and debates. After a first exchange of opinions, among others about the extent to which French developments are peculiar or more generally applicable, participants decided to program a continuation of this discussion as well for the next economists' seminar.