Posts Tagged ‘Austrian Economics’

How to conquer a rational long-term growth path, by Juan María Nin.

With a Neo-Austrian economic background and a deep knowledge of the roots of the Great Recession started in 2008, (dated well before though) Juan María Nin explains in his recently published book, titled “For a rational (economic) growth” and subtitled “From the Great Recession to Stagnation: Solutions to compete un a Digital World”(1), his recommendations for structural change. He states thar our economies need to escape from the current low-growth or recession situation and from the institutions and structures that generated it since we accepted: (i) A money generation monopoly by Central banks or similar institutions, (Fed); (ii) a fractionary reserve banking system and the subsequent working capital structural deficit in the banking industry; (iii) a monetary policy-led constant inflationary pressure, the bubbles arising from them, and the banking failures emerging from them; (iv) the necessary last resort lender role of central banks and the public support when things go bad for the private bank balances, (v) a tacit agreement in exchange for the loans granted to the public sector in his unstoppable growth path.

He suggests some structural and institutional changes if a rational path for growth not blindly based in debt, inflation and low interest rates is to be pursued: Read more…