Some Considerations on the Issue of Economic and Social Sustainability

Giovanni Cossiga

Review of European Studies, 2021, vol. 13, issue 2, 97

Abstract: To be implemented and analyzed, according to the good rules of relationship with nature, sustainability must be equipped with a theoretical scheme able of helping to understand the dynamics of this relationship together with the opportunities offered to improve the development of the economic system. Essentially, it’s about acknowledging that, just like physics, also the economy is subject to some general and abstract laws. This is the case of the core inflation value, defined by Central Banks as a value close to 2%. So, if the economy moves along the track indicated by this value, we have confirmation that growth is regularly developing. This core inflation value is implicitly defined without a clear specification. We can therefore admit that it’s an ideal value like the great universal constants, which reports about an economic system that develops according to the rules of natural compatibility. According to this point of view, the core inflation close to 2% is essentially a utopia, because it can only be achieved if the global economic growth moves in full accordance with the nature around us. It follows that even if we can verify on field the realization of a base value close to 2%, actually we are not in the best conditions, especially if the global economy is suffering from deflation as today. The deflation, that is the tendency of prices to fall, is part of the complex messages sent by the nature and economic systems to signal that the economy is not doing well and has become unstable. Both inflation and deflation are messages that never contribute to the economic development course, but they are born and evolving in parallel with the appearance of the economic cycle in daily activity. In summary, a mechanism that has the responsibility, by imposing pauses on the system, to reduce the instability of the systems and to facilitate the return to the natural development condition. A correction system based on the economic conjuncture that obviously distinguishes the stability by the way that the economy grows and develops in a linear and constant inclination depending on differentials.

Date: 2021
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