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An alternative Circuitist view for Southeastern Europe

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  • Nicholas Potts

Abstract

Our paper seeks to introduce the reader to Circuitist monetary theory. Circuitist theory adopts a very different methodological approach to monetary questions than mainstream monetary theory, and arrives at very different policy conclusions. Circuitist analysis predicts that Southeastern Europe's movement to a much more free-market based financial system and macroeconomic policy is only likely to hamper growth in the long run. Our paper first summarises the Circuitist approach. We then consider work by Parguez in particular on the danger of free-market policy inspired thriftiness, by firms, the financial sector, the Central Bank and households, adversely effecting economic activity.

Suggested Citation

  • Nicholas Potts, 2007. "An alternative Circuitist view for Southeastern Europe," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 2(1/2), pages 3-13.
    • Handle: RePEc:ids:ijfsmg:v:2:y:2007:i:1/2:p:3-13
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