Finance Capital and Financialization: A Comparative Reading of Marx and Hilferding

Abstract

This paper compares the definitions of the concept of finance capital in the work of Karl Marx and Rudolf Hilferding. While Marx outlines a definition of finance capital as the separation and monopolization of capital-money transactions, Hilferding refers to the merger of banking and industry and the domination of the latter by the former. In spite of their differences, both definitions are based on an analysis of the relationship between the credit system and production. Through an examination of the similarities and differences between the two authors, the paper argues that while Marx’s ambition was to propose a general theory of finance capital, Hilferding constructed a theory of the financialization of capitalism.

Keywords

• Marx (Karl)
• Hilferding (Rudolf)
• credit system
• finance capital
• financialization