Stabilizing an Unstable Economy

Nota:

• Flaw of Capitalism:  Capitalism cannot function if it oscillates between threats of imminent collapse of asset prices and employment and inflation and rampant speculation

1. Neoclassical model Flawed

   Nota:

   • Cannot explain economic instability.  Fails to explain how financial crisis can emerge out of the normal functioning economy and why the economy of one period is susceptible to crisis while an economy of another is not
2. Caused by Internal Processes of our type of economy

Nota:

• Agenda for reforming our malfunctioning economy