Uncertainty, Competition, and Speculative Finance in the Eighties
The 1980s has been characterized by financial speculation that emerged as a result of lingering market uncertainty and stiff competition among market players. Such competition was, in turn, a result of technological innovations and a shrinking market for many industries. The dismantling of financial constraints contributed to the speculative activity which proved eventually disastrous because it was not geared towards socially productive activity. The dynamics of the financial system that lead to institutional change result from profit-seeking activities ... In this process innovation occurs ... transform(ing) the financial and economic system ... into one that (is) vulnerable to crises.