Economic Theory under the Lens of Sustainability: A Simple Start | Chapter 2 | Current Topics on Business, Economics and Finance Vol. 3

 The topic of the article is to emphasize controversial aspects or those that may appear to be controversial in the conduct of the economy in the light of the principles of sustainability. From this point of view, the economic cycle is not an ordinary movement of the economic scenario, but an anomaly, a disease of the economic system due to errors in the management of government programs. According to this point of view, they are not even a penalty but an imposed attempt from the natural orientation for a return of the economic system to the classic growth, constant and with less damage to nature. In this rectification process, an important role belongs to the majority of the community who are the spokesmen of nature, from which they receive general guidelines on the correct line of development. Therefore, it is a model of care that develops between the community and the government leadership on the issue of the economy, with the aid of the natural constants. For the return to the state of grace on the path of development, the cure is the recession. Recession intended as a tool to bring the deviated system back to the natural condition of stability. According to this point of view, the recession is a sin to be paid in the economy management and there would be no way to avoid paying this price. Therefore, attempts to avoid the penalties imposed to correct the system may be reckless. Trying to avoid the penalty means only to refuse now that damage, which would allow the following return to the serenity of natural stability. In the scenario under treatment, two handmaids of the conjunctural cycle can move in the scenario: Inflation or Deflation. They are indicators of greater malaise. Going against the cycle and its handmaids can mean going against the grain, postponing growing damage to the economy to the future. Better to follow the natural orientation and indications of the majority in the community, which is the arbiter of changes in the state of the economy. In such a complex framework, monetary policy must correct the market and curb the logic of speculation which goes against the interests of the community. Unchecked, speculation can accentuate the two formidable monetary anomalies that have long raged on the markets.

Author(s) Details:

Giovanni Antonio Cossiga,
Università Sapienza, Rome, Italy.

Please see the link here: https://stm.bookpi.org/CTBEF-V3/article/view/10008