Inevitable disadvantages of a dominant economy

Federico Novelo U.1

“Mainstream economists need to rethink their fundamental beliefs, or perhaps they shouldLet’s establish a new “mainstream” entirely. (James K. Galbraith, Project Syndicate, 15 /XI/ 2023).

Accumulation of facts from yesterday and today, including detection and, above all, corrections imposed by conventional economic wisdom, John K. Galbraith From Say’s Law to the current version is known as mainstream Quantity theory of currencypasses through Phillips curveRemember the unwholesome pastime of those who practice the discipline of eradicating disease by killing the patient.

The conclusion that “production” Open unemployment above 6%, causing inflation to fall in the US, through a Money politics Difficult, in the last two years, comes into that trivial desire to make morality into a science – precise, moreover – Alfred Marshall He transformed it from political economy to pure economy.

And, as was the case with most autonomous central banks in the nineties of the last century, the dominant economy, in other words, can invariably explain inflation from the demand side and in terms of quantity increases. Money.

1 Professor at the Metropolitan Autonomous University (UAM, Mexico).

Even if it comes from necessity, for example, there is no knowledge or desire to come along. Randall Wray Already Yeva Nersian In understanding inflation, “…is the result of excessive spending and not the effect of excess money, although that is generally the case confusion One by one. How this expenditure is “financed” does not determine its inflationary impact” (Understanding Money and Politics MacroeconomicsIn Jacobs, Micahly Mariana Mazzucato (Editors), 2023, Forthcoming. Another capitalism must be possible. Thinking Outside the Convention, Siclo Tvetiuño Editors, Mexico, p. 93)

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Very little cognitive ability is tolerated. Service Trying to understand supply-side inflation is akin to falling behind. Ignore it Inflexibility of distribution evident in the affected traffic congestion Global chains Provision during epidemics repeated the neoclassical routine of suffering Blindness Voluntary that characterizes him.

Placing an assumption – usually devoid of reality – where an explanation should occupy, lacks foresight Great DepressionA pathetic and irresponsible enlightenment of austerity, ignorance of the predictable perverse effect of economic sanctions. Russia And poor diagnosis and poor “cure” of inflation 2021-2022, it seems Enough failures Leaning in favor of a new hegemonic economy should eliminate such significant flaws and the intractable political interests that still support it.

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