What is Morganist Economics

Discussion in 'Economics' started by morganist, Feb 15, 2011.

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    What is Morganist Economics?

    Morganist Economics is a progressive school of economic thought. Most of the current mainstream schools of economic thought tend to concentrate on the size of government with an emphasis on whether to stimulate the economy during a downturn or not. Morganist Economics puts the emphasis on developing the tools used to control or manage the economy in a more effective and less cost effective way. An example of this would be a Keynesian would argue to stimulate the economy during an economic slump, a Monetarist would argue that the economy should not be stimulated and that the interest rate should be used to hit an inflation target. Whereas a Morganist would question whether the tools or mechanisms used to achieve either objective is beneficial to the long term economy.

    Morganist Economics therefore puts innovation and the concept of the requirement of perpetual change as the centrepiece of its thinking. As society alters through time the needs of the economy will also change so new tools and mechanisms have to be introduced to allow for the progression of social needs. This has led to the creation of new aggregate demand controls, a new banking system and a new taxation system among other things, which are aimed at being able to deliver a pragmatic economic system that can deal with the new demands of a flexible society. By looking at economics through a different view point and by developing these new ideas it has led to a new perspective on the failings of the current economic, banking and financial systems, which highlights the current problems in a way that current economists have failed to see.