A Turn to Reality

A Turn to Reality,” (John Bellamy Foster) Monthly Review, vol. 38, no. 5 (October 1986), pp. 56-64. DOI: 10.14452/MR-038-05-1986-09_7

Review of Economics Without Equilibrium by Nicholas Kaldor.

It would be impossible to discover a much greater gap between what poses as a modern scientific tradition and the underlying reality that it purports to explain than that which is currently dis- closed by neoclassical economics. Indeed, “within today’s standard economic theory, which is commonly called the neoclassical synthesis,” as Hyman Minsky has observed in his new book, Stabilizing an Unstable Economy, “the question ‘why is our economy so unstable?’ is … a nonsense question. Standard economic theory not only does not lead to an explanation of instability as a system attribute, it really does not recognize that endogenous instability is a problem that a satisfactory theory must explain.”


, , ,

Comments are closed.