Abstract
In this chapter, we shall investigate the contribution of financial forces to the economic decline. Although most economists hold that financial institutions are designed to channel resources into productive activities, they do not necessarily do so. Indeed, the financial pressures associated with a decline can lead investors to withhold their funds from productive activities while they dissipate their funds in investments of the most wasteful sort.
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© 1996 Michael Perelman
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Perelman, M. (1996). Finance, the Falling Rate of Profit and Economic Devastation. In: The Pathology of the U.S. Economy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-24329-7_6
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DOI: https://doi.org/10.1007/978-1-349-24329-7_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-65023-3
Online ISBN: 978-1-349-24329-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)