Toward a new sustainable economy

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    The current financial meltdown is the result of under-regulated markets built on an ideology of free market capitalism and unlimited economic growth. The fundamental problem is that the underlying assumptions of this ideology are not consistent with what we now know about the real state of the world. The financial world is, in essence, a set of markers for goods, services, and risks in the real world and when those markers are allowed to deviate too far from reality, 'adjustments' must ultimately follow and crisis and panic can ensue. To solve this and future financial crisis requires that we reconnect the markers with reality. What are our real assets and how valuable are they? To do this requires both a new vision of what the economy is and what it is for, proper and comprehensive accounting of real assets, and new institutions that use the market in its proper role of servant rather than master.
    Original languageEnglish
    Title of host publicationMacroeconomic Theory and its Failings
    Editors Steven Kates
    Place of PublicationUK
    PublisherEdward Elgar Publishing Inc.
    Pages40-50
    Edition1
    ISBN (Print)978-1-84844-819-3
    Publication statusPublished - 2010

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