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Economic Growth, Capitalism and Unknown Economic Paradoxes

Author

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  • Stasys Girdzijauskas

    (Vilnius University, Kaunas Faculty of Humanities, Muitines g. 8, LT-44280, Kaunas, Lithuania)

  • Dalia Streimikiene

    (Vilnius University, Kaunas Faculty of Humanities, Muitines g. 8, LT-44280, Kaunas, Lithuania)

  • Andzela Mialik

    (Vilnius University, Kaunas Faculty of Humanities, Muitines g. 8, LT-44280, Kaunas, Lithuania)

Abstract

The paper deals with failures of capitalism or free market and presents the results of economic analysis by applying a logistic capital growth model. The application of a logistic growth model for analysis of economic bubbles reveals the fundamental causes of bubble formation—economic paradoxes related with phenomena of saturated markets: the paradox of growing returnability and the paradoxes of debt and leverage trap. These paradoxes occur exclusively in the saturated markets and cause the majority of economic problems of recent days including overproduction, economic bubbles and cyclic economic development. Unfortunately, these paradoxes have not been taken into account when dealing with the current failures of capitalism. The aim of the paper is to apply logistic capital growth models for the analysis of economic paradoxes having direct impact on the capitalism failures such as economic bubbles, economic crisis and unstable economic growth. The analysis of economic paradoxes and their implication son failures of capitalism provided in the paper presents the new approach in developing policies aimed at increasing economic growth stability and overcoming failures of capitalism.

Suggested Citation

  • Stasys Girdzijauskas & Dalia Streimikiene & Andzela Mialik, 2012. "Economic Growth, Capitalism and Unknown Economic Paradoxes," Sustainability, MDPI, vol. 4(11), pages 1-20, October.
  • Handle: RePEc:gam:jsusta:v:4:y:2012:i:11:p:2818-2837:d:20938
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    References listed on IDEAS

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    7. Arthur F. Burns & Wesley C. Mitchell, 1946. "Measuring Business Cycles," NBER Books, National Bureau of Economic Research, Inc, number burn46-1, March.
    8. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    9. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
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    Cited by:

    1. Inna Gryshova & Tatyana Shabatura & Stasys Girdzijauskas & Dalia Streimikiene & Remigijus Ciegis & Ingrida Griesiene, 2019. "The Paradox of Value and Economic Bubbles: New Insights for Sustainable Economic Development," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    2. Valentina V. Tarasova & Vasily E. Tarasov, 2017. "Logistic map with memory from economic model," Papers 1712.09092, arXiv.org.
    3. Tarasova, Valentina V. & Tarasov, Vasily E., 2017. "Logistic map with memory from economic model," Chaos, Solitons & Fractals, Elsevier, vol. 95(C), pages 84-91.
    4. Raffaella Barone & Donato Masciandaro & Friedrich Schneider, 2022. "Corruption and money laundering: You scratch my back, i’ll scratch yours," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 318-342, February.

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