Economics, Money and Sustainable Development

The failure of economics, the consequences for society, and what to do about it is an abbreviated and updated version of the 2012 book Crisis, Economics and the Emperor’s Clothes. In addition to highlighting the shortcomings of economics as a science and the consequences for society it pays particular attention to our monetary system, outlining the need for monetary reform as a precondition for sustainable development.

As its predecessors the book argues that what passes for economic science fails to explain and predict economic reality. Worse, it leads to poor and even faulty policy recommendations which deter society from using its productive capacity to the benefit of all.

Part 1 looks at the shortcomings of economics as a science, and shows that today’s mainstream economics is more faith than science. Like other faiths economics has a number of dogmas, untouchable truths which are deemed always to apply everywhere, which are discussed in Part 2. These dogmas form the basis for policy prescriptions and in general, for a vision as to how our economy and society should be organized. They are adhered to not only by practically all economists but also by the media, politicians, and other opinion leaders and decision makers who consider themselves economically literate. These prescriptions have a particularly negative effect on the single most important choice for our economy and society: our choice of monetary system.

Part 3 of this book analyzes the impact of the policy prescriptions based on economic dogma, notably with regard to our monetary system. Our present choice of system is based on the faith that because of the guidance of the “invisible hand of the market” money creation and its benefits are best delegated to private banks. This choice leads to increasing economic imbalances, a major risk of new crises, and the inability to address the social and environmental problems that threaten society’s future.

Part 4 discusses the how abandoning economic dogma would allow addressing our economic, social and ecological challenges, amongst others through monetary reform, whereas Part 5 gives pointers for a new economic science that would provide a better understanding of economic phenomena as well as provide the tools for working for the public good rather than the privileged few.

STILL UNDER ELABORATION: This (short) book will become available in the course of 2018

A preliminary summary of the main arguments of Economics, Money and Sustainable Development can be found here.