The Ritual of Capitalization

The Ritual of Capitalization
Fix, Blair. (2021). Real-World Economics Review. No. 97. September. pp. 78-95. (Article - Journal; English).

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Abstract or Brief Description

For more than a century, political economists have sought to understand the nature of capital. The prevailing wisdom is that there must be something ‘real’ – some productive capacity – that underpins capitalized values. This thinking, I argue, is a mistake. Building on Jonathan Nitzan and Shimshon Bichler’s theory of capital as power, I argue that capitalization is an ideology. It is a quantitative ritual for converting earnings into present value. Although the ritual is arbitrary, it gives rise to astonishing empirical regularities, reviewed here.



Publication Type

Article - Journal


capitalization discounting power stock market


BN Money & Finance
BN Power
BN Region - North America
BN Value & Price
BN Business Enterprise
BN Capital & Accumulation
BN Distribution
BN Institutions

Depositing User

Jonathan Nitzan

Date Deposited

23 Sep 2021 01:52

Last Modified

04 Oct 2021 16:01


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