La crisi e le responsabilità della teoria economica: la paura della complessità
The debate on the financial crisis risks to hide the black holes which are nested in accepted theories and policy guidelines. Among such black holes there are important issues: how money is created in a growing economy, which is the role of wealth assets not linked with current production, which are the relations between such phenomena and monetary savings, how chronological time affects production and in its changes, how the emergence of sophisticated contracts and the explosion of discretionary behaviours have complicated the problem of coordination. The paper, which aims at reaching an audience of social scientists wider than the economists’ community, shows that the endogenous creation of money for financing the productive activities (Wicksell) is unlikely to be sufficient to feed a moving economy. Additional money is likely to be needed. It can be provided by public deficit or by credit going to finance speculative investments. In the meanwhile monetary savings have a high probability to result, in developed economies, in excess with respect to productive investments. These interrelated elements may imply an inflation concerning the prices of unproductive assets and a possible displacement of real activities. However, while the inflation concerning productive flows is considered as an evil, everybody seems to be happy when the values of assets not directly connected with current production increase, and the central banks end up admitting that they support such tendencies. The paper discusses how we ought to revise policy strategies, favouring a non-Keynesian policy of deficit spending linked to long lasting programs and adopting banking policies for the financing of industrial projects.
|Date of creation:|
|Date of revision:||2009|
|Contact details of provider:|| Web page: http://dipartimento.dse.uniroma1.it/economia/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:des:wpaper:4. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sardoni)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.