Any Progress in Stable Economics?

In summary, the conversation discusses the topic of stable economics and how it has not been achieved despite the presence of intelligent individuals and different theories on business cycles. The speaker also mentions the idea of the economy being a complex system that cannot be fully controlled or designed, and that adjustments are necessary for it to function. They also mention the possible consequences of trying to maintain stability in the economy. Finally, the conversation mentions the belief of some economists that artificial low interest rates contribute to the business cycle.
  • #1
bleedblue1234
109
0
Just a thing I have been mulling over in my head lately has been the thoughts of stable economics (not reactionary Keynsian economics that the government has been employing)... it seems with all of the smart people in the US and around the globe we are still nowhere near a 'stable' economic system that is not burdened by enormous debt loads and crazy market swings... I was just wondering if there has been any thought to this topic and if so what ideas have come about...
 
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  • #2
There are lots of ideas on business cycles, which is what I think your talking about, but macroeconomics isn't really a science yet, there is no academic consensus on what causes business cycles, and what, if anything, can be done about it. The economy is a complex system and can't really be "designed". Adjustment to real changes in the world is necessary. The economy is constantly adjusting as new information is discovered, and to try to prevent prices from adjusting in the name of "stability" can have dangerous consequences.
 
  • #3
stability is unstable (nod to Hyman Minsky)
 
  • #4
There is a school of thought (Austrian Economics) which believes that the business cycle is in a large partly caused or at least exaggerated by artificial low interest rates. Read the book, "The Dollar Crisis by Richard Duncan"
 
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Related to Any Progress in Stable Economics?

1. What is the current state of the economy?

The current state of the economy can vary depending on the specific country or region in question. However, in general, stable economics can be measured by factors such as low inflation rates, steady economic growth, and low unemployment rates.

2. What factors contribute to stable economics?

There are several factors that can contribute to stable economics, including strong fiscal and monetary policies, a diverse and competitive market, a stable political environment, and a skilled and educated workforce. These factors work together to create a stable and sustainable economy.

3. How do economists measure progress in stable economics?

Economists use various indicators to measure progress in stable economics, such as gross domestic product (GDP), inflation rates, unemployment rates, consumer spending, and trade balances. These indicators provide a comprehensive view of the overall health and stability of an economy.

4. Can a country have stable economics during a recession?

Yes, it is possible for a country to have stable economics during a recession. While recessions can cause temporary setbacks in economic growth, stable economics can still be achieved through effective government policies, such as stimulus packages and unemployment benefits, to support and stimulate the economy.

5. Is stable economics sustainable in the long term?

Stable economics can be sustainable in the long term if there is a balance between economic growth and resources, as well as responsible management of debt and inflation. Additionally, continuous monitoring and adjustment of policies can help maintain stable economics in the long run.

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