The Conclusions and the Policy Recommendations
The book recommendations will be based on analysis of the properties of the new model, which explains the monetary system. This traces the development of catastrophes in the form of repeated financial instability leading to inflation, deflation and unemployment over the course of history, as the capitalist system evolves. The cycle either speeds up or it slows down improvements and progress in our standard of living. This phenomenon is ignored in the traditional neoclassical theory of economics, because of its emphasis on the rȏle of barter in exchange. The structure and behaviour of the banking system are regarded there as a ‘shroud’ over the real economy. The analysis here will show that in recent years, concerning the latest financial crisis, the lender of last resort interventions have staved off part of the deep economic depression, but the current demand management policies have perpetuated the current Great Recession with growing income inequality.