ABSTRACT

Marx highlighted the contradictions of capitalism, and argued that capitalism is but a stage on the way to a final societal form (Wallerstein 1974). Despite its contradictions and potential limits, capitalism continues to survive, by periodically redesigning and renewing its structure. Followers of Marx categorized these developments within capitalist history into different stages or periods, elaborating on the weaknesses of the system. Thus, the tendency of crisis plays a central role in Marxian tradition, exposing the limitations of the system and forcing new periods of capitalist development (Clarke 1994). The theory of capitalism can be approached by three different levels of analysis, one of which is a stage theory that analyzes the structural manifestations of the law of value in the stages of mercantilism, liberalism, and imperialism (Albritton 1986). 1 The analysis of different stages of development is also of central importance in the Post Keynesian tradition. Institutions have a profound impact on economies and hence economies need to be regarded from a historical perspective (Kriesler 2013).