The Crisis Cycle of the Finance Capital: The Core-Periphery “Convergence”

The last financial crisis that emerged in 2007 in USA and expanded to the rest of the world in 2008-2009 is followed by a new wave of crises in Europe. It has been argued that the resultant „ great recession‟ is being transformed to a great depression recently. We recall that the “great depression” periods of the capitalist system carries similar characteristics in that the crisis affects firstly the current account and capital account balances. That‟s why, it is crucial to examine the concerned accounts in order to analyze the effects of the phenomenon both in the core and the peripheral countries. The study employed the IMF BOP and IFS statistics. In order to follow the cycle of the finance capital between the core and the periphery, a group of countries are being selected with respect to their income levels and geographical locations: USA, Germany, Spain, Portugal, Greece, South Korea. Mexico and Turkey.