The Bilateral Relationship between the Dynamics of Economic Crises in Capitalism and the Role of the Financial Sector

This study focuses on three different approaches to the role of finance and the financial sector in economy-wide relations and in specific conditions of economic crises. First, we investigate the Minskyan framework in dealing with the roots and the reasons of financial crises. Second, we look at Crooty's research on financial relations in order to understand the role of money, credit, and financial intermediation in Marx's crisis theory. Third, we summarize the position of Schumpeter in this debate and his two basic approaches which are the increase in the rate of total output and the term 'creative destruction' in order to analyze the dynamics of capitalist crises