Los aportes de Axel Leijonhufvud sobre las limitaciones del funcionamiento de la economía: evidencia de América Latina[The contributions of Axel Leijonhufvud on the limitatioins in the funtioning of the operation of the economy: Evidence from Latin America]

This article presents a survey of both, the main theoretical contributions of Axel Leijonhufvud on the limitations in the functioning of the economic system, as the empirical evidence of Latin America that supports them. He stated that the capitalism inherent crises are explained both failures of information and coordination among sectors, which provoke excess of aggregated supply or demand. These mismatches are behind severe crisis like the depression of 1930, as in episodes of price instability and high inflation. In this sense, the evidence contained in this work illustrates that in the short run the limitations in the functioning of the economy generate economic and social costs, like the increasing of relative price variability due to high inflation process. Moreover, a central aspect that emerges of this approach is that in the long run instability in prices and output are prejudicial for economic performance