A world between crises

Grzegorz W. Kolodko ()
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Grzegorz W. Kolodko: Kozminski University, 59 Jagiellonska Street, 03-301 Warsaw, Poland

Acta Oeconomica, 2012, vol. 62, issue 1, 3-13

Abstract: One of the most often committed mistakes in economic reasoning is the supposition about the continuity of economic processes. However, what dominates in reality is a process of permanent changes, which sometimes proceed in a cascading manner rather than linearly. It must be acknowledged that the capitalist market economy by its very nature is involved in periodical crises. They must occur from time to time, yet the magnitude of the recent crisis is a result of inappropriate institutions and wrong macroeconomic policies based on neoliberalism. While the underlying causes of the crisis and the ways out of it at the era of interdependent global economy is discussed vividly in countless books and papers, yet it ought to be clear that the world is moving from one crisis to another. Thus, one must consider not only the economics of crisis, but also a kind of crisis of economics. There is a need for a New Pragmatism, based on the better understanding of economics as science, describing the economy as a system of forces and flows which contantly give feedback and influence each other.

Keywords: Crisis; recession; globalization; world economy; international finance; economic policy; institutions; regulation; financial markets; governance (search for similar items in EconPapers)
JEL-codes: A11 B10 D53 E32 E63 F02 F34 F42 N20 P10 (search for similar items in EconPapers)
Date: 2012
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