Monday, 6 September 2010

Money is not the centre of an economy

"Orthodox economists would have us believe that money makes the world go round. The more money you make the better. the higher a corporation's profits the better. The bigger a country's GDP per capita the better. The greater the NASDAQ Index the better. Lonergan, by contrast, holds a different view. In his opinion, money & finance should not be considered the centre-piece of an economy. Rather, money & finance should meet the needs of the production. Production should not be manipulated to meet the needs of finance." (McShane and Anderson, Beyond Establishment Economics: No Thank You Mankiw [Halifax: Axial Press, 2002] 28.)

No comments:

Post a Comment