Money, parallel financial system and the deepening of the crisis

The objective of the present research is to propose a debate about the violations perpetrated over credit money due to the rupture of Bretton Woods’s agreements and the emergence of a shadow financial system. These changes distorted credit money as one of the fundamental pillars for stability and development of international economic system, causing the current crisis. Our research is mainly based on the post-keynesian theoretical approach about credit money developed by Parguez (2010), Gnos and Rochon (2004), Secareccia and Parguez (2000), etc. The other theoretical grounds are the analysis made by Tobias and Hyun Song over the shadow financial system and the valuable contributions of Parguez (2010), Guttman (2010), Girón and Chapoy (2009) about financial crisis in Europe, United States and Latin America. To accomplish our purpose we have analyzed the following topics: 1) Credit money and the metamorphosis of the parallel financial system 2) The insertion of financial circuits to the speculative financial circuit 3) Credit money and its role in the recovery In order to explain the current structural crisis this research does not neglect its origins and development. The set of modifications over credit money and financial system were designed that dismantling all those policies that destroyed the basic conditions for financial stability and applying severe institutional reforms is the way out, since it is the only manner to lessen the rate of unemployment and look for full employment (excluding all type of involuntary underemployment)