Being absolutely modern in the economy

Mistakes are not lacking in economics. All these unsuccessful attempts were commendable or abominable because they could not convince or overcome adversity. These failures have been a hotbed for certain dictatorships in economic history and have ruined the defeated idea of ​​retaining only doctrine. And in economics, there is also the temptation of good. When the ideology of the moment marries that era better than any other, it destroys everything on the road and provides only the best and deaf voice. The dictatorship of history and the temptation of good are certainly two breasts of a particular idea of ​​progress, even in economics. Get used to Absolutely modern Resume Rambo with his Saison Unenfer.

Get used to Absolutely modern In economics, why not, but how? There are two ways to do things. One is the cyclical, called the mid-term, and the other is the structural, called the long-term.

Coupling approachBe absolutely modern

The short-term approach consists, in the first place, to blame the ruler of diagnostic errors, which is a form of stupor or tragic upset in the face of crisis. The ruler is then notified to recognize his mistakes: incompetence, blindness, etc. Everything goes. After repentance, the ruler must restrain himself, increase his imagination, and finally give courage. Therefore, he dared and dared not to be complicated. Thus, the money-debt played by the central bank and the state, this concept of “I have you, you have me, beard money-debt” was born.Nevertheless, according to credible sources, this little game seems to have made it possible to save the world several times: 2008 (Crisis) Subprime), 2011 (sovereign debt crisis), 2020 (covid crisis). Indeed, the amount of money debt broke the record because we forgot to invent the end of the game.

This temptationGet used to Absolutely modern Did it provide a compelling response to the economic crisis? Let’s be the fact. At least these commitments seem to have avoided the worst. But still, financial survival leaves a bitter taste. I’ve never spent so much on just a few results. In economic terms, great terms have been devised to explain this lack of policy effect.

Consider the case of fiscal policy. If the government spends a lot of money on very few results, this is explained as follows: multiplier Weak; The ruler receives what the ruler has given him, but keeps much of it in his pocket.

Consider the case of monetary policy.When a central bank makes so much money with very little spending, it’s Neutral interest rate Weak; consumers are more demanding to agree to sacrifice savings for consumption. We are enlightened! The ineffectiveness of our economic policies can be explained by the weaknesses of multipliers and neutralities … but why are they so weak?

Structural approachBe absolutely modern

therefore, Be absolutely modern It seems that they could not respond effectively to the economic crisis. But perhaps the injunction could at least avoid structural errors? Perhaps it has carved a noble path into our path of growth?Let’s dare to express it: Perhaps we witnessed something like this: Economic progress… usually it’s a place where things go wrong and people get angry. To be sure, economic progress does not mean the same thing, according to the flow of thought that people stick to.

The neoclassicals will insist on the size of the cake, and the new Keynesians will live in the way the cakes are distributed. In both cases, we are interested in technological advances. The engine either fell from the sky of potential growth (extrinsic growth by Robert Solow) or became self-sustaining (endogenous growth by Paul Romer). This advance that must be cherished is cake size and stock. That’s it for the perfect world, and the angelic version of modern creative destruction.

The simple thing is, you can imagine the dedication of machine learning, the all-digital era, a couple of big data in our daily lives, rolling the red carpet towards the 2.0 growth path. Maybe, but that doesn’t matter. According to standard measures of potential economic growth, labor productivity, and technological progress, there is little doubt. Western economic beasts have lost their nerves and for nearly 40 years everything hasn’t gone that fast. The aging of the population has many implications, but it is not the only one. The downside will also be an increasingly weak contribution from technological progress.

Then there are some explanations to summarize into the two camps. Productivity is actually high, but measurements are inadequate (PhilippeAghion). Productivity is very low because we have already entered the market. cluster The simplest knowledge (Robert Gordon). But in reality, evil can be deeper.We will attend The disappearance of the seeker seeking, and the dedication of the seeker found..

But the scam is obvious and researchers aren’t sure they will find anything.Terrible, too longAbsolutely modern Those who don’t want to know anything impose his reading grid and his funding methods on the researcher. Result? “The decline in the number of actual scientific discoveries is hidden by the importance of technological advances that implement most of the conceptual breakthroughs that occurred in the previous historical period.”In his pamphlet, Alan Spiot, citing the work of mathematicians Stuart and David Geman, has already made us aware of the subject of opposition to hegemony. measurement Institutionalization: “Governance by numbers”. Yes, further innovation. More discoveries, no.

L’New angel Economic

Therefore, the Limbardian injunction Must be absolutely modern The application to the economy has been criticized because it seems to be fragile and porous. This dirty mania for progress is not new and has already been noted in philosophy, morality, politics and more. To date, there is no better warning than Walter Benjamin’s revisited Klee Angel Angel. “He has his eyes wide open, his mouth wide open, his wings open … This storm irresistibly pushes him into the future, turning his back as a mountain of ruin before he grows into the sky. What we call progress is a storm. »»

All Digital Dictat: Competition for Progress