Nationalise the Banks !?! Is Friedman dead ?

I will go back and have a close look at the colonial time period to refresh myself.

Friedman et al get a drubbing in the New Scientist:

Editorial: Economic theory just isn't up to scratch

Why economic theory is out of whack

Essentially they say that the current market theory is flawed and adherence to it inevitably leads to boom-bust cycles with all the problems that brings. Newer models more accurately reflect what is happening and show how the current market is not properly adapted to reflect the true value of stocks as Friedman's theory postulates.

Zhou_Enlai wrote:Friedman et al get a drubbing in the New Scientist:

Editorial: Economic theory just isn't up to scratch

Why economic theory is out of whack

Essentially they say that the current market theory is flawed and adherence to it inevitably leads to boom-bust cycles with all the problems that brings. Newer models more accurately reflect what is happening and show how the current market is not properly adapted to reflect the true value of stocks as Friedman's theory postulates.

Free market versus Keynesianism seems to be a theoretical cycle that tracks boom and bust. We bust, no one can afford to eat so Keynes is called on and money is printed. It seems to work for a while but then things get very spiky and whirly with inflation ripping away and then everyone runs for the free market butchers to chop everything down to size again. The joys of capitalism.

cactus flower wrote: The joys of capitalism.

As opposed to the utter failure of any other competing market structure? Capitalism is ugly and can seem close to collapse sometimes, but it rewards effort, promotes enterprise, encourages innovation, punishes failures and squeezes out inefficiencies. As a result of this, it survives and keeps society in the style it's accustomed to. Compare that to the economic cul de sacs Cuba, North Korea and the Central Asian Republics are in. Vietnam recently(in the last decade) ditched communism, and, lo and behold, its economy began to boom vigorously.

Capitalism roxx!