Chapter 3: Finance Capital, State Transformation and Crisis Regulation: The Contribution of Rudolf Hilferding

This chapter examines the relationship between finance capital and the transformation of the state in Rudolf Hilferding’s thought. Hilferding defines finance capital as the fusion of banking and industry, a situation that presupposes a high degree of development of capitalist relations. Finance capital prompts a transformation of the state economic functions. This chapter considers the transfor­mation of the state and its consequent ability to deal with crises of finance capital era. It also highlights Hilferding’s pioneering contribution in sketching the bases for the great contemporary theories of State intervention in crises regulation.