IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/25508.html
   My bibliography  Save this paper

Market Myths in Contemporary Economics

Author

Listed:
  • Punabantu, Siize

Abstract

This paper elaborates on the economic operating system (EOS) the role it can play in growth. It focuses on markets, price determination and forces of demand and supply in order to illustrate how an EOS model offers greater economic growth, stability and safety. This paper delves into market theory to determine whether what is commonly understood about market forces and free markets in contemporary economics is as reliable as might be expected; do free markets encourage or retard economic growth? It is often, for amusement, brought up how modern medicine despite its advances cannot cure the common cold. Contemporary economics has a similar pet peeve; it does not know how to cure common inflation and deflation. The same way medicine leaves the body’s immune system to deal with colds until a cure is found contemporary economics leaves inflation and deflation to market forces to sort out with the occasional booster shot of intervention when this process seems to fail. To this day the stand off between Keynesian and Monetarist models demonstrates the irascible nature of this economic bug; is seems in contemporary economics there is only one way to control it and that’s do nothing about it. This nothing in contemporary economics is what is referred to as free markets. Allowing free markets to set prices and act as a mechanism for managing inflation works, what doesn’t work is that free markets systems based on a Monetarist model lack reliable growth and not being able to do anything comprehensive when market forces begin to act up. In a downturn, suddenly the liberty of free markets can become a threat to economic stability. Free markets may work best in an economic operating system (EOS) model better able to exploit the efficiency of markets whilst accelerating economic growth.

Suggested Citation

  • Punabantu, Siize, 2010. "Market Myths in Contemporary Economics," MPRA Paper 25508, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25508
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/25508/1/MPRA_paper_25508.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/25669/1/MPRA_paper_25669.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Punabantu, Siize, 2010. "The Origin of Wealth," MPRA Paper 24730, University Library of Munich, Germany.
    2. Punabantu, Siize, 2010. "Financing the doubling of GDP in one year at constant price," MPRA Paper 24132, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Punabantu, Siize, 2011. "How to end to the debt crisis in one month," MPRA Paper 32683, University Library of Munich, Germany.
    2. Punabantu, Siize, 2010. "Currency Wars & International Trade," MPRA Paper 26736, University Library of Munich, Germany.
    3. Punabantu, Siize, 2012. "Governments in economic crisis: What is the 99% and why does it exist?," MPRA Paper 37316, University Library of Munich, Germany.
    4. Punabantu, Siize, 2010. "The Origin of Wealth," MPRA Paper 24730, University Library of Munich, Germany.

    More about this item

    Keywords

    Scarcity; banking; credit creation; banks; open market operations; resource creation; implosion; wobble effect; economic thought; poverty; wealth; equation of exchange; cost curve; market efficiency; supply; demand; money; price; mark-up; cost plus pricing; rationality; operating level economics; economic growth; expenditure fallacy; paradox.;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • G01 - Financial Economics - - General - - - Financial Crises
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • F31 - International Economics - - International Finance - - - Foreign Exchange

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25508. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.