Crisis And Embodied Innovations : Fluctuating Trend Vs Fluctuations Around Trend, the Real Vs the Financial, Variety Vs Average

A Curious Thought That The Innovations Embodied In Machinery And Other Fixed Capital, Besides Growth, Also Drive Recession Has Received A Solid Confirmation. From Now On, Output And Employment Decline And Subsequent Jobless Recovery Can Be Forecasted In Explicit Terms Of Figures And Timing Rather Than Of Probabilities And Possibilities Of Crisis Onset; The Short And Long Runs Having Been Integrated Together At That. For These Reasons Many Traditional Simplified Theories Are Challenged And It Is Proposed A Constructive Framework Capable To Catch Turning Points In The Economy Instead Of Mere Extrapolations And Trends. The Policy Implication Is That Crises Are Unavoidable, But They Are Quite Predictable And Their Depth Is Manageable. In Addition To This, The Classical And Neoclassical Views On How An Innovative Economy Works And Fluctuates Are Converged And Reconciled. As It Has Turned Out, General Equilibrium Is Not Altogether General - Objective Marginalism Suppresses A Subjective One - The Keynesian Easy Money Is A Paradoxical Example Of Doing The Right Thing For The Wrong Reason; And Financial Bubbles Are Pricked By Real Structural Changes, Not The Other Way Around. This Book Gives An Impetus For Development Of Economic Science For Another 100 Years And Provides A Fresh Perspective On Crises And Innovation, Making It Indispensable Reading For Scholars, Researchers, Policy-makers And Professionals-- 1. Introduction -- Part I: Crises And Cycles Driven By Embodied Innovations: Real Aspects. 2. The State Of The Art Around The Innovations-crisis Link -- 3. The Innovations-related Cause Of Crises Confirmed By The Prototype Economy -- 4. The Innovations-related Cause Of Crises Confirmed Through The Concrete Economy -- 5. Empirical Support For The Presence Of The Innovations-related Cause In The Current Crisis (non-financial Roots Of The Financial Crisis) -- Part Ii: Real Cyclical Dynamics In Monetary Environment. 6. Theoretical Basis To Embed The Real Into The Financial: Production-consumption Compromise Vs Supply-demand Paradigm -- 7. Dynamics Of Prices -- 8. From Interest Rate To Stocks -- Part Iii: Precursors And Competitors -- 9. Concept Of Price. Aristotle Vs Marshall -- 10. Starting Accumulation Vs Primitive Accumulation -- 11. Demando-mania. Keynes And Demand-deficient Versions Of Crisis -- 12. Wage-profit Distortions In Ireland And Ukraine -- 13. Bridges To The Cambridge Multisectoral Dynamic Model Of The British Economy. Volodymyr Ryaboshlyk, [emeritus Professor, Financial-legal Police Academy, Ukraine]. Includes Bibliographical References (pages 179-188) And Index. This book introduces embodied innovations into the circle of already recognised causes of economic crises. The author shows how issues of investment, accumulation and structural change associated with embodied innovations can be used to monitor potential crisis. The author argues that crises are predictable and manageable in depth. A curious thought that the innovations embodied in machinery and other fixed capital, besides growth, also drive recession has received a solid confirmation. From now on, output and employment decline and subsequent jobless recovery can be forecasted in explicit terms of figures and timing rather than of probabilities and possibilities of crisis onset; the short and long runs having been integrated together at that. For these reasons many traditional simplified theories are challenged and it is proposed a Constructive Framework capable to catch turning points in the economy instead of mere extrapolations and trends. The policy implication is that crises are unavoidable, but they are quite predictable and their depth is manageable. In addition to this, the classical and neoclassical views on how an innovative economy works and fluctuates are converged and reconciled. As it has turned out, general equilibrium is not altogether general - objective marginalism suppresses a subjective one - the Keynesian easy money is a paradoxical example of doing the right thing for the wrong reason; and financial bubbles are pricked by real structural changes, not the other way around. This book gives an impetus for development of economic science for another 100 years and provides a fresh perspective on crises and innovation, making it indispensable reading for scholars, researchers, policy-makers and professionals Front Matter....Pages i-xiii Introduction....Pages 1-10 Front Matter....Pages 11-11 State of the Art Around the Innovations-Crisis Link....Pages 13-29 The Innovations-Related Cause of Crises Confirmed by the Prototype Economy....Pages 30-50 The Innovations-Related Cause of Crises Confirmed by the Concrete Economy....Pages 51-63 Empirical Support for the Presence of the Innovations-Related Cause in the Current Crisis (Non-financial Roots of the Financial Crisis)....Pages 64-68 Front Matter....Pages 69-69 Theoretical Basis to Embed the Real into the Financial: Production-Consumption Compromise vs Supply-Demand Paradigm....Pages 71-126 Dynamics of Prices....Pages 127-137 From Interest Rate to Stocks....Pages 138-146 Front Matter....Pages 147-147 Concept of Price: Aristotle vs Marshall....Pages 149-159 Starting Accumulation vs Primitive Accumulation....Pages 160-165 Demando-Mania: Keynes and Demand-Deficient Versions of Crisis....Pages 166-168 Wage-Profit Distortions in Ireland and Ukraine....Pages 169-171 Bridges to the Cambridge Multisectoral Dynamic Model of the British Economy....Pages 172-175 Conclusion....Pages 176-178 Back Matter....Pages 179-194 Machine generated contents note: 1. Introduction PART I: CRISES AND CYCLES DRIVEN BY EMBODIED INNOVATIONS: REAL ASPECTS 2. The State of the Art Around the Innovations-crisis Link 3. The Innovations-related Cause of Crises Confirmed Through the Prototype Economy 4. The Innovations-related Cause of Crises Confirmed Through the Concrete Economy 5. Empirical Support for the Presence of the Innovations-related Cause in the Current Crisis (Non-financial Roots of the Financial Crisis) PART II: REAL CYCLICAL DYNAMICS in MONETARY ENVIRONMENT 6. Theoretical Basis to Embed the Real into the Financial (Production-Consumption Compromise vs Supply-Demand Paradigm) 7. Dynamics of Prices 8. From Interest Rate to Stocks PART III: PRECURSORS and COMPETITORS 9. Concept of Price. Aristotle vs Marshall 10. Starting Accumulation vs Primitive Accumulation 11. Demando-Mania. Keynes and Demand-deficient Versions of Crisis 12. Wage-profit Distortions in Ireland and Ukraine 13. Bridges to the Cambridge Multisectoral Dynamic Model of the British Economy (MDM).