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Opinion

Is the Market Economy Inherently Unstable, or Is Government the Culprit?

Is the Market Economy Inherently Unstable, or Is Government the Culprit?
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Commentary

Following in the footsteps of John Maynard Keynes, most economists hold that one cannot have complete trust in a market economy, which is seen as inherently unstable. If left free, the market economy could lead to self-destruction. Hence, there is a need for the government and central bank to manage the economy. Successful management, in the Keynesian framework, is done by influencing overall spending.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.