Horizontal Development of Science
11:11, szeptember 12, 2018.
Can financial dogma be sustained?
Professor Emerita, University Professor,
University of Szeged,
Pázmány Péter Catholic University
Published in: Public Finance Quarterly 2018/3. (p. 335-344.)
Summary: Rethinking economics is unavoidable. There is no value-free economics. It is necessary to create more practical curricula when teaching economics. Economics is not a vertical, but a horizontal science. There is not only one model, there are different models. It is important to include the functioning of monetary institutions in the economic models to be able explain the economic crises. Rethinking monetary rules is important. Modern money creation causes credit boom, income inequalities and financialisation. Banks are not financing real investments. Credit is given to finance consumption which leads to debt slavery. Central bank independence was not enough to stop the crises in the economy. Both money creation by the government and by the banking system may cause crises. We can only choose between two bad options. It is necessary to reinvent ancient morals and make economics more ethical.
Keywords: teaching of economics, monetary institutions, assets in banks, financing consumption, money creation, economics and morals
JEL codes: A2, E51, E52, E58