Alternative approaches for the reformulation of economics
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Why do we need new approaches? a short overview
In the last decades most of advanced and developing economies have undertaken a deep structural transformation. This profound structural change, caused by the transition from a manufacturing economy to a service-based one, is among the causes of the current crisis (see Delli Gatti et al. 2012). The dereculation of the banking system with the consequent redirection of banking activity from the credit sector to the financial one,1 and the liberalization of financial markets, the globalization and the delocalisation of production with the resulting labor market flexibility are just some of the many transformations affecting the socio-economic system in the recent decades.
All these serious changes have been poorly described by mainstream economics. Emblematic is Queen Elizabeth’s question at the London School of Economics during a discussion on the 2008 financial crash: “Why did nobody notice it?”, asked the Queen. As reported by Catullo...
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