Economic Review, Vol. 63 No. 9-10, 2012.
Preliminary communication
THE PHENOMENON OF CONSUMPTION – KEYNES’S ALGORITHM
Branimir Lokin
Mladen Mlinarević
Abstract
The crisis in transitional and developed countries that threatens with global depression encourages at a global lever numerous discussions in the field of theoretical and ideological thought. As always when a crisis is in question, Keynes’s theory of crisis i.e. the analysis on the possibilities of its application in the modern world is at heart of the discussion. The neoliberal paradigm a priori rejects this possibility due to the fact that Keynesian theory is inappropriate at national level in the current global economic crisis. Contrary to Keynes’s policies, the neoliberals insist on open economies, full competition of the three constitutive markets and maximum capital flow on a global scale. However, practice keeps refuting them constantly due to the fact that the crisis grows ever more fierce and global. The Keynesian approach that places national economy at the heart of the globalized world is incapable of explaining the references of that same globalized world that has so far developed a powerful global institutionalized system. In the newly formed circumstances Keynes’s theory is undoubtedly seeking a redefinition of its classical postulates and methodological solutions. This paper tries to address the possible answers to those redefinitions all the while remaining in licit correlation with Keynes’s original viewpoints. The conclusions which the authors have reached in this paper talk of possibilities of applying Keynes’s methodological algorithm in the circumstances of the present crisis with a specific redefinition of the aggregate consumption and investment. The crisis in Croatia, which is addressed at the end of the paper, calls for certain neokeynesian solutions, understandingly under the condition that researches continue and analytical approaches develop further.
Keywords
algorithm; crisis; consumption; neoliberalism; Keynesianism; impostation; mobility; currency; cost of capital; nation of capital
Hrčak ID:
89334
URI
Publication date:
15.10.2012.
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