Crisis and the Failure of Economic Theory

Crisis and the Failure of Economic Theory

Author: Giancarlo Bertocco

Publisher: Edward Elgar Publishing

ISBN: 9781785365355

Category:

Page: 256

View: 485

Economists have rightly been criticized for not having foreseen the crisis that exploded in 2007–2008. As Giancarlo Bertocco eloquently argues, responsibility does indeed rest heavily on their shoulders. By developing a theory which excluded the possibility that a catastrophic crisis could ever happen, the economics profession has justified decisions and behaviours that caused the Great Recession. This book presents an alternative theoretical approach built on the lessons of Marx, Keynes, Schumpeter, Kalecki, Kaldor and Minsky, which highlights the structural instability of a capitalist economy and the endogenous nature of the current crisis.

The End of Theory

The End of Theory

Author: Richard Bookstaber

Publisher: Princeton University Press

ISBN: 9780691191850

Category: Business & Economics

Page: 236

View: 173

An in-depth look at how to account for the human complexities at the heart of today’s financial system Our economy may have recovered from the Great Recession—but not our economics. The End of Theory discusses why the human condition and the radical uncertainty of our world renders the standard economic model—and the theory behind it—useless for dealing with financial crises. What model should replace it? None. At least not any version we’ve been using for the past two hundred years. Richard Bookstaber argues for a new approach called agent-based economics, one that takes as a starting point the fact that we are humans, not the optimizing automatons that standard economics assumes we are. Sweeping aside the historic failure of twentieth-century economics, The End of Theory offers a novel perspective and more realistic framework to help prevent today's financial system from blowing up again.

How Markets Fail

How Markets Fail

Author: Cassidy John

Publisher: Penguin UK

ISBN: 9780141939421

Category: Business & Economics

Page: 416

View: 939

How did we get to where we are? John Cassidy shows that the roots of our most recent financial failure lie not with individuals, but with an idea - the idea that markets are inherently rational. He gives us the big picture behind the financial headlines, tracing the rise and fall of free market ideology from Adam Smith to Milton Friedman and Alan Greenspan. Full of wit, sense and, above all, a deeper understanding, How Markets Fail argues for the end of 'utopian' economics, and the beginning of a pragmatic, reality-based way of thinking. A very good history of economic thought Economist How Markets Fail offers a brilliant intellectual framework . . . fine work New York Times An essential, grittily intellectual, yet compelling guide to the financial debacle of 2009 Geordie Greig, Evening Standard A powerful argument . . . Cassidy makes a compelling case that a return to hands-off economics would be a disaster BusinessWeek This book is a well constructed, thoughtful and cogent account of how capitalism evolved to its current form Telegraph Books of the Year recommendation John Cassidy ... describe[s] that mix of insight and madness that brought the world's system to its knees FT, Book of the Year recommendation Anyone who enjoys a good read can safely embark on this tour with Cassidy as their guide . . . Like his colleague Malcolm Gladwell [at the New Yorker], Cassidy is able to lead us with beguiling lucidity through unfamiliar territory New Statesman John Cassidy has covered economics and finance at The New Yorker magazine since 1995, writing on topics ranging from Alan Greenspan to the Iraqi oil industry and English journalism. He is also now a Contributing Editor at Portfolio where he writes the monthly Economics column. Two of his articles have been nominated for National Magazine Awards: an essay on Karl Marx, which appeared in October, 1997, and an account of the death of the British weapons scientist David Kelly, which was published in December, 2003. He has previously written for Sunday Times in as well as the New York Post, where he edited the Business section and then served as the deputy editor. In 2002, Cassidy published his first book, Dot.Con. He lives in New York.

The Crises of Capitalism

The Crises of Capitalism

Author: Saral Sarkar

Publisher: Catapult

ISBN: 9781619021259

Category: Political Science

Page: 224

View: 481

For nearly 300 years, capitalism propelled the world's most successful economies to new heights of development. But a spate of global environmental disasters and severe economic crises compels thinkers to question whether the system continues to function. Leveraging historical perspective, extensive research, and case studies, The Crises of Capitalism builds a compelling argument that challenges the most fundamental assumptions of prevailing economic theory. Saral Sarkar exposes capitalism's flaws through the lens of ecosocialism, a philosophy that asserts that natural resources drive production and development. Keynes, Schumpeter, Marx, and Engles had no reason to believe that there would ever be a shortage of oil, minerals, water, or food—and that technological innovation could surmount any obstacle. But oil extraction has peaked, food is harder to come by, and the cost to maintain what natural resources remain has increased exponentially. Capitalism requires constant innovation to create growth—but as Sarkar establishes, even computers wouldn't exist without copper, gold, and zinc. The Crises of Capitalism exists at the intersection of environmental awareness and economic theory. Sarkar challenges predominant explanations for catastrophic events like the 2008 global economic crisis, revises the classic paradigm of growth, and points to evidence of systemic economic failure. In this provocative, revolutionary criticism, Sarkar suggests that like other long–abandoned economic theories, capitalism has reached its limits. "This is an important book, and it is on the front edge of the thinking that has to come to bear on the real crisis the world is facing, of the impossible idea of growth forever and the economic model that is driving the planet into irreversible crises." —Doug Tompkins

Crisis In Economic Theory

Crisis In Economic Theory

Author: Derek Bell

Publisher: New York : Basic Books

ISBN: STANFORD:36105001915318

Category: Business & Economics

Page: 226

View: 756

Twelve experts reexamine the assumptions and theories of economics, and discuss the failure of modern theory to provide reliable guidelines for economic planning

Business as Usual

Business as Usual

Author: Paul Mattick

Publisher: Reaktion Books

ISBN: 9781861899828

Category: Business & Economics

Page: 126

View: 823

The recent global economic downturn has affected nearly everyone in every corner of the globe. Its vast reach and lingering effects have made it difficult to pinpoint its exact cause, and while some economists point to the risks inherent in the modern financial system, others blame long-term imbalances in the world economy. Into this debate steps Paul Mattick, who, in Business as Usual, explains the global economic downturn in relation to the development of the world economy since World War II, but also as a fundamental example of the cycle of crisis and recovery that has characterized capitalism since the early nineteenth century. Mattick explains that today’s recession is not the result of a singular financial event but instead is a manifestation of long-term processes within the world economy. Mattick argues that the economic downturn can best be understood within the context of business cycles, which are unavoidable in a free-market economy. He uses this explanation as a springboard for exploring the nature of our capitalist society and its prospects for the future. Although Business as Usual engages with many economic theories, both mainstream and left-wing, Mattick’s accessible writing opens the subject up in order for non-specialists to understand the current economic climate not as the effect of a financial crisis, but as a manifestation of a truth about the social and economic system in which we live. As a result the book is ideal for anyone who wants to gain a succinct and jargon-free understanding of recent economic events, and, just as important, the overall dynamics of the capitalist system itself.

The Crisis in Economics

The Crisis in Economics

Author: Edward Fullbrook

Publisher: Routledge

ISBN: 9781134393022

Category: Business & Economics

Page: 240

View: 204

Economics can be pretty boring. Drier than Death Valley, the discipline is obsessed with mathematics and compounds this by arrogantly assuming its techniques can be brought to bear on the other social sciences. It wasn't going to be long, therefore, before students started complaining. The vast majority have voted with their feet and signed up for business and management degrees, but in the past two years there has grown an important new movement that has decided to tackle those who think they run economics head-on. This is the Post-autistic Economics Network. The PAE Network started in France and has spread first to Cambridge and then other parts of the world. The name derives from the fact that mainstream economics has been accused of institutional autism, ie. qualitative impairment of social interaction, failure to develop peer relationships and lack of emotional and social reciprocity. In short, economics has lost touch with reality and has become way too abstract. This book charts the impact the PAE Network has had so far and constitutes a manifesto for a different kind of economics - it features key contributions from all the major voices in heterodox economics including Tony Lawson, Deirdre McCloskey, Geoff Hodgson, Sheila Dow and Warren Samuels.

The Crisis of Vision in Modern Economic Thought

The Crisis of Vision in Modern Economic Thought

Author: Robert L. Heilbroner

Publisher: Cambridge University Press

ISBN: 0521497140

Category: Political Science

Page: 144

View: 810

A deep and widespread crisis affects modern economic theory, a crisis that derives from the absence of a "vision"--a set of widely shared political and social preconceptions--on which all economics ultimately depends. This absence, in turn, reflects the collapse of the Keynesian view that provided such a foundation from 1940 through the early 1970s, comparable to earlier visions provided by Smith, Ricardo, Mill, and Marshall. The "unraveling" of Keynesianism has been followed by a division into discordant and ineffective camps whose common denominator seems to be their shared analytical refinement and lack of practical applicability. This provocative analysis attempts both to describe this state of affairs, and to suggest the direction in which economic thinking must move if it is to regain the relevance and remedial power it now pointedly lacks.

Alternative Approaches to Economic Theory

Alternative Approaches to Economic Theory

Author: Victor A. Beker

Publisher: Routledge

ISBN: 9780429667237

Category: Business & Economics

Page: 234

View: 718

The 2007–2008 financial crisis exposed the shortcomings of mainstream economic theory with economists unprepared to deal with it. In the face of this, a major rethinking of economics seems necessary and in presenting alternative approaches to economic theory, this book contributes to the rebuilding of the discipline. This volume brings together contributions from different perspectives and theoretical approaches that address the challenge of updating the economic theory corpus and seek to recover prestige for this discipline after the failure of neoclassical economics. It addresses a range of topics, including the complexity approach to economics, category theory, the Post-Keynesian approach to micro and macroeconomics, financialisation, multidimensional analysis and ecological economics. The book is aimed at economics scholars, researchers, academics and practitioners, as well as upper undergraduates and graduates in this area of knowledge. It may also be of interest for people interested in methodological issues in economics and the relationship between economic theory and the real world.

Hubris

Hubris

Author: Meghnad Desai

Publisher: Yale University Press

ISBN: 9780300213546

Category: Business & Economics

Page: 287

View: 620

A frank assessment of economists' blindness before the financial crash in 2007-2008 and what must be done to avert a sequel The failure of economists to anticipate the global financial crisis and mitigate the impact of the ensuing recession has spurred a public outcry. Economists are under fire, but questions concerning exactly how to redeem the discipline remain unanswered. In this provocative book, renowned economist Meghnad Desai investigates the evolution of economics and maps its trajectory against the occurrence of major political events to provide a definitive answer. Desai underscores the contribution of hubris to economists' calamitous lack of foresight, and he makes a persuasive case for the profession to re-engage with the history of economic thought. He dismisses the notion that one over-arching paradigm can resolve all economic eventualities while urging that an array of already-available theories and approaches be considered anew for the insights they may provide toward preventing future economic catastrophes. With an accessible style and keen common sense, Desai offers a fresh perspective on some of the most important economic issues of our time.