A Different Approach to Analysis of the U.S. and Global Economic Crisis By Jack Rasmus
Sunday, July 29, 2012 Both major wings of contemporary mainstream economists—‘Retro Classicalists’ and ‘Hybrid Keynesians’—fail in fundamental ways to understand the qualitative characteristics of the economic crisis that continues to impact the U.S. and global economy. Neither wing has been successful predicting the deep and rapid contraction that began in 2007; explaining why massive, multi-trillion dollar liquidity injections into the banking system since 2007 have failed to generate a sustained economic recovery; or understanding why the current US and global economies are today, in 2012, steadily slipping toward another global banking crisis and consequent general economic contraction. There are various reasons for this mainstream failure. But a short list would include the inability to understand the nature of investment in the 21st century, in particular the relationship between speculative forms of investment vs. real asset investment; the changing relationship between central bank money supply and internal bank forms of credit creation; and the critical causal interdependencies between forms of debt and income, which this writer has summarized elsewhere by creating a new conceptual analysis based on terms such as ‘systemic fragility’. full: http://www.zcommunications.org/a-different-approach-to-analysis-of-the-u-s-and-global-economic-crisis-by-jack-rasmus _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
