A suggestion for a new definition of the concept of finance capital using Marx's notion of 'capital as commodity'

Despite the current phase of financialisation, Hilferding's important concept of 'finance capital' is still ambiguous because of the problems of Hilferding's definition of the concept and the criticisms it has been subjected to. Generally these criticisms approach the concept in a too concrete and historically specific manner. Criticisms which claim that the dominance of finance is a transitory phenomenon were proved to be invalid, but this persistent aspect of monopoly capitalism needs to be explained on a theoretical level. On the other hand, the institutional aspect of the concept is still controversial. This article claims that the concept could be defined on a more abstract level by using Marx's notion of 'capital as commodity', and that the relationship that Hilferding's concept establishes between monopolisation and the dominance of finance could be more clearly expressed. Thus a new definition is suggested, and it is shown that this could help overcome the problems of and objections to the concept. Copyright The Author 2012. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.