by Summary:
Summary of "Zombie Economics" How Dead Ideas Still Walk Among Us by John Quiggin • Economic theories continue to live as “zombie ideas” even after events refute them. • The 2008 “Global Financial Crisis” exposed the fallacy of five hard-to-kill principles that fueled “market liberalism”: • First, beginning in the 1990s, “the Great Moderation” claimed business cycles had stilled. • Second, the “Efficient Markets Hypothesis” assumed markets have perfect information. • Third, full employment fell away under “Dynamic Stochastic General Equilibrium,” which says that free markets would determine labor and capital allocations. • Fourth, “trickle-down economics” said that enriching the wealthy benefits everyone. • And fifth, “privatization” advocates said government cannot run an economy as well
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Summary of "Zombie Economics" How Dead Ideas Still Walk Among Us by John Quiggin • Economic theories continue to live as “zombie ideas” even after events refute them. • The 2008 “Global Financial Crisis” exposed the fallacy of five hard-to-kill principles that fueled “market liberalism”: • First, beginning in the 1990s, “the Great Moderation” claimed business cycles had stilled. • Second, the “Efficient Markets Hypothesis” assumed markets have perfect information. • Third, full employment fell away under “Dynamic Stochastic General Equilibrium,” which says that free markets would determine labor and capital allocations. • Fourth, “trickle-down economics” said that enriching the wealthy benefits everyone. • And fifth, “privatization” advocates said government cannot run an economy as well
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John Quiggin considers the following as important:
This could be interesting, too:
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Robert Skidelsky writes Lord Skidelsky to ask His Majesty’s Government what is their policy with regard to the Ukraine war following the new policy of the government of the United States of America.
| Summary of "Zombie Economics" How Dead Ideas Still Walk Among Us by John Quiggin • Economic theories continue to live as “zombie ideas” even after events refute them. • The 2008 “Global Financial Crisis” exposed the fallacy of five hard-to-kill principles that fueled “market liberalism”: • First, beginning in the 1990s, “the Great Moderation” claimed business cycles had stilled. • Second, the “Efficient Markets Hypothesis” assumed markets have perfect information. • Third, full employment fell away under “Dynamic Stochastic General Equilibrium,” which says that free markets would determine labor and capital allocations. • Fourth, “trickle-down economics” said that enriching the wealthy benefits everyone. • And fifth, “privatization” advocates said government cannot run an economy as well as private sector interests can, though many privatization efforts failed. • Persistently high unemployment results in “hysteresis,” in which idled workers’ job skills deteriorate, entrenching chronic joblessness. • Many countries reaped cash by selling national assets but ended up being harmed by the long-term fiscal impact of such divestiture. • A “mixed economy” recognizes government’s role in the long-term interests of society. |