Summary Of "For A New Economy" By Paul Ormerod: UNIVERSITY SUMMARIES

By MAURICIO ENRIQUE FAU

We have summarized here the essential of this book by the author.

FOR A NEW ECONOMY: THE FALLACIES OF THE ECONOMIC SCIENCES

CHAPTER 1 ECONOMIC THEORY IN CRISIS

THE WORLD ECONOMY IS IN CRISIS. Unemployment in WESTERN EUROPE is close to 20 MILLION UNEMPLOYED. The United States has two deficits: the federal budget and the balance of trade. Large areas of the former Soviet empire are on the verge of economic collapse. Japanese companies are facing the deepest RECESSION since the war.

• Language: English
• Publisher: BOOKS AND SUMMARIES BY MAURICIO FAU
• Release date: Jun 6, 2022
• ISBN: 9798201805159

MAURICIO ENRIQUE FAU

Mauricio Enrique Fau nació en Buenos Aires en 1965. Se recibió de Licenciado en Ciencia Política en la Universidad de Buenos Aires. Cursó también Derecho en la UBA y Periodismo en la Universidad de Morón. Realizó estudios en FLACSO Argentina. Docente de la UBA y AUTOR DE MÁS DE 3.000 RESÚMENES de Psicología, Sociología, Ciencia Política, Antropología, Derecho, Historia, Epistemología, Lógica, Filosofía, Economía, Semiología, Educación y demás disciplinas de las Ciencias Sociales. Desde 2005 dirige La Bisagra Editorial, especializada en técnicas de estudio y materiales que facilitan la transición desde la escuela secundaria a la universidad. Por intermedio de La Bisagra publicó 38 libros. Participa en diversas ferias del libro, entre ellas la Feria Internacional del Libro de Buenos Aires y la FIL Guadalajara.

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Summary Of For A New Economy By Paul Ormerod

UNIVERSITY SUMMARIES

MAURICIO ENRIQUE FAU

Published by BOOKS AND SUMMARIES BY MAURICIO FAU, 2022.

While every precaution has been taken in the preparation of this book, the publisher assumes no responsibility for errors or omissions, or for damages resulting from the use of the information contained herein.

SUMMARY OF FOR A NEW ECONOMY BY PAUL ORMEROD

First edition. June 6, 2022.

Copyright © 2022 MAURICIO ENRIQUE FAU.

ISBN: 979-8201805159

Written by MAURICIO ENRIQUE FAU.

Table of Contents

Title Page

Copyright Page

Ormerod, Paul

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Ormerod, Paul

FOR A NEW ECONOMY: THE FALLACIES OF THE ECONOMIC SCIENCES

CHAPTER 1 ECONOMIC THEORY IN CRISIS

THE WORLD ECONOMY IS IN CRISIS. Unemployment in WESTERN EUROPE is close to 20 MILLION UNEMPLOYED. The United States has two deficits: the federal budget and the balance of trade. Large areas of the former Soviet empire are on the verge of economic collapse. Japanese companies are facing the deepest RECESSION since the war.

Conventional economics, trapped in an idealized and mechanistic worldview, are unable to help. The dispute between monetarists and Keynesians is well known, but synthesis between these two schools has emerged, giving rise to a new intellectual orthodoxy in economics.

For many years it has been a fundamental principle in economics that the price of a commodity is determined by the relative levels of supply and demand; The higher the relative demand for a product, the higher its price.

Why are employees working in, for example, financial markets, better paid than school teachers or economists who teach at universities? There are answers to this question but none of them address the fundamental principle of supply and demand.

In orthodox economic theory -liberal and neoliberal- it is an article of faith that free trade in the absence of obstacles to international trade is something absolutely desirable. However, Nobel laureate Maurice Allais condemned the Maastrich treaty, stating that free trade only has favorable effects when it occurs between regions with comparable levels of development. Shortly after Allais made this statement, the president of the European Bank for Reconstruction and Development, an orthodox economist, after acknowledging that he had been his teacher, proceeded to dismiss the criticisms of free trade as unequivocally stupid. He said that every obstacle to free trade is a factor that leads to recession.

The paradox of all this is that TRADE BARRIERS WITHIN THE EUROPEAN COMMUNITY ARE LOWER THAN EVER AND EUROPE IS NOT EXPERIENCING A BOOM BUT SINKING INTO A DEEP RECESSION.

THE MAIN POSTULATES OF THE ECONOMICS DISCIPLINE ARE BEING CHALLENGED AS SOME OF THE MOST IMAGINATIVE ECONOMISTS TRY TO RESTORE THE LINK WITH REALITY THAT CHARACTERIZED THE WORK OF THE CLASSICAL ECONOMISTS

ECONOMIC SCIENCE DURING the 19th century began to use a method that sought to increase mathematical precision in its theory by adopting a mechanistic perspective, copying the method from the physical sciences of the Victorian era. Economic science continued with this mechanistic perspective that is considered of little relevance today by biologists, chemists and physicists.

THE CONCEPT THAT FREE TRADE IS BENEFICIAL TRACKS BACK FROM the origins of the study of economics in the LATE 18th and early 19th