All posts filed under: Business Cycle

Seven reasons economics needs to start from scratch

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Business Cycle / Complexity Economics / Economics / Eric Beinhocker / Philosophy

There are a number of problems with mainstream macro-economics so fundamental that they require the slate to be wiped clean and the enterprise begun from scratch. Here is an incomplete (but growing) list of knockout issues with the conventional approach. Economics can’t describe the Business Cycle Economics’ first assumptions prevent it from explaining its central phenomenon. The first question of the economy is the nature of the business cycle. Economics has no useful theory of the business cycle. In fact, since Walras […]

The War of Metaphors : Why the Global Financial Crisis Was Marxs’ Revenge

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Business Cycle / Complexity Economics / Economics / Hegel / Philosophy / Politics / Uncategorised

“universal history is the history of a few metaphors.” Jorge Luis Borges On February 20, 1974 Hiroo Onoda, an army intelligence officer of the Imperial Japanese Army, left the Philippine jungle. He had spent the previous 19 years continuing to fight the Pacific War despite Japan’s surrender. Ono refused to hand over his sword until his old commanding officer, then a civilian bookseller, travelled to the Philippines to receive it in person. Onoda’s identity was defined by […]

The business cycle : traditional economics account of its central phenomenon is simply wrong

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Business Cycle / Economics

The dynamic of the business cycle is the central mystery of modern society. During the twentieth century we experimented with a variety of techniques to smooth out its ups and down. This century has brought a different problem – so called ‘secular stagnation’ – characterised by consistently lower growth rates. Bizarrely, the core models used by most mainstream economists have long been known by mathematicians to be incorrect, or at least to miss entirely the […]

Evolutionary Economics – respect natural cycles

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Business Cycle / Colin Tudge / Economics / Evolutionary Economics / Globalisation / Quantitive Easing

When we intervene in a complex adaptive system whose dynamics we do not understand, there is a possibility that the effects may be the very opposite of the ones we intend. Attempts to manage out the downswings in the business cycle can have unexpected consequences. Every era has its mysteries. Each society has its known unknowns. Some cultures approach the unexplained with humility, others pretend they have answers when they have none. For most of […]