Stages in the new debt deflation fisher-minsky crisis

1. Introduction

The aim of this paper |1|
is to analyze the current phase of the global crisis that began in the United States in 2007 as a financial crisis linked to sub-prime mortgages. The current phase, which began during the last quarter of 2008, is characterized by the interaction of the financial crisis —far from having been overcome— and the deepening and universal expansion of the recession in production. I will go into this in greater detail further along. Section 2 summarizes my position about the nature of the global crisis. Section 3 presents a proposal about the stages this crisis has already gone through. Section 4 examines the advance of the recession in the world economy; and Section 5 focuses on the development of deflation. Finally, Section 6 presents some conclusions and perspectives for the future.

2. About the Characterization of the Global Crisis

As I put forward in a previous paper (Guillén 2009), the global crisis is the most
important capitalist crisis since World War II. It is a new type of debt-deflation crisis, highlighting the limits of the finance-dominated regime of accumulation in place since the 1980s and characterized, among other things, by securitization, that is, a financing regime based on issuing securities and derivatives.

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