Occupy the Solution Not Wall Street

Managing Systemic Bad Debt with System Gap Theory

Business & Finance
Cover of the book Occupy the Solution Not Wall Street by Hema Senanayake, AuthorHouse
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Hema Senanayake ISBN: 9781477256480
Publisher: AuthorHouse Publication: September 10, 2012
Imprint: AuthorHouse Language: English
Author: Hema Senanayake
ISBN: 9781477256480
Publisher: AuthorHouse
Publication: September 10, 2012
Imprint: AuthorHouse
Language: English

The development of physical productive forces is not cyclical, but we have a macroeconomic system that follows boom-and-bust cycles. If the development of physical productive power behaves in a boom-and-bust cyclical pattern, we have to tolerate the boom-and-bust cycle of macroeconomic output and the system as a whole. But if the progress of the physical productive power or the potential of the increment of physical productive power is progressive, it is not necessary to tolerate the cyclical behavior of the macroeconomic system. This does not mean that the business cycles of microeconomic system (which correspond to the performance of individual enterprises) should not be tolerated; instead, such cyclical behavior is necessary to ensure business efficiency that is based on consumer preferences. Businesses should be allowed to fail and new businesses should be allowed to emerge based on efficiency and consumer preferences. But macroeconomic system failures are not due to consumer preferencesbut to the general illiquidity of consumers arising from a cyclical bad debt crisis as explained by the System Gap Theory. The illiquidity of consumers is not a physical phenomenon but a monetary phenomenon; and money that is not real is an abstract quantity, which we can control. That is why I strongly argue that we could have prevented the collapse of macroeconomic systems in the US and Europe in late 2007and the continuing crisis can be resolved rather quickly if we change the monetary equation. To do it what wasand isneeded is a new macroeconomic policy tool and wisdom beyond the Federal Reserve.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

The development of physical productive forces is not cyclical, but we have a macroeconomic system that follows boom-and-bust cycles. If the development of physical productive power behaves in a boom-and-bust cyclical pattern, we have to tolerate the boom-and-bust cycle of macroeconomic output and the system as a whole. But if the progress of the physical productive power or the potential of the increment of physical productive power is progressive, it is not necessary to tolerate the cyclical behavior of the macroeconomic system. This does not mean that the business cycles of microeconomic system (which correspond to the performance of individual enterprises) should not be tolerated; instead, such cyclical behavior is necessary to ensure business efficiency that is based on consumer preferences. Businesses should be allowed to fail and new businesses should be allowed to emerge based on efficiency and consumer preferences. But macroeconomic system failures are not due to consumer preferencesbut to the general illiquidity of consumers arising from a cyclical bad debt crisis as explained by the System Gap Theory. The illiquidity of consumers is not a physical phenomenon but a monetary phenomenon; and money that is not real is an abstract quantity, which we can control. That is why I strongly argue that we could have prevented the collapse of macroeconomic systems in the US and Europe in late 2007and the continuing crisis can be resolved rather quickly if we change the monetary equation. To do it what wasand isneeded is a new macroeconomic policy tool and wisdom beyond the Federal Reserve.

More books from AuthorHouse

Cover of the book Morforwyn by Hema Senanayake
Cover of the book Steam Engines That Follow the Party Line by Hema Senanayake
Cover of the book The Chronicles of Nathan Lamb by Hema Senanayake
Cover of the book Surviving Life by Hema Senanayake
Cover of the book Carnet De Croquis by Hema Senanayake
Cover of the book Stop & Listen by Hema Senanayake
Cover of the book Shuv'hani by Hema Senanayake
Cover of the book Gazing into God's Open Heart by Hema Senanayake
Cover of the book Maya's Heart by Hema Senanayake
Cover of the book The Attorney and His Associate by Hema Senanayake
Cover of the book The Derelict House by Hema Senanayake
Cover of the book Rosie's Story by Hema Senanayake
Cover of the book 101 Moments of Motherhood by Hema Senanayake
Cover of the book Firefly by Hema Senanayake
Cover of the book Kissing the Hand of the Dead by Hema Senanayake
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy