Economics Through the Looking-Glass : Reflections on a Perverted Science Paperback / softback
by R.A. Rayman
Part of the Routledge Revivals series
Paperback / softback
Description
Published in 1998. In spite of spectacular improvements in market flexibility, the characteristics of the past twenty years are slow growth and high unemployment.
Economics Through the Looking-Glass exposes the theoretical fallacy at the heart of the New Economic Orthodoxy.
The fallacy lies in treating the economy as a "single-gear" machine guaranteed to operate at its full employment potential as long as it benefits from the lubricant of perfectly flexible markets (in a Walrasian Utopia of continuous market-clearing equilibrium).
Unemployment is thereby reduced to a structural problem of market imperfection.
As a cure for unemployment, market flexibility is presumed to be adequate; as a cure for inflation, monetary restriction is presumed to be safe.
The flaw in Orthodox logic is exposed by a demonstration that a monetary economy operates as a 'multi-gear' machine.
Unless it is in 'top-gear', market flexibility (even of Utopian perfection) is not sufficient for full employment. 'Single-gear' Economic Orthodoxy is shown to have developed, not as a science, but as a religion beginning with Adam Smith's revelation of the Law of Competition.
A Looking-Glass journey backwards in time from Adam Smith uncovers his suppression of the Law of Circulation and exposes the dangerous delusion of Orthodox economic policy.
As a weapon against unemployment, market flexibility is inadequate; as a weapon against inflation, monetary restriction is unsafe.
The 'multi-gear' alternative heralds the final stage of economic liberalisation: deregulation of the market for money.
The rescue of interest rates from political or central bank interference and the control of inflation by a mechanism triggered by market forces would put an end to the Orthodox policy of maintaining unemployment above its natural market rate by misguided monetary intervention.
Information
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Out of stock
- Format:Paperback / softback
- Pages:346 pages
- Publisher:Taylor & Francis Ltd
- Publication Date:07/12/2020
- Category:
- ISBN:9780367000899
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Information
-
Out of stock
- Format:Paperback / softback
- Pages:346 pages
- Publisher:Taylor & Francis Ltd
- Publication Date:07/12/2020
- Category:
- ISBN:9780367000899
