Conference paper
MONEY, MARKETS AND MEN
Mario Pines
orcid.org/0000-0002-7500-1943
; University of Trieste, Department of Economics, Administrative, Mathematic and Statistic Sciences “Bruno de Finetti” (DEAMS), Trieste, Italy
Abstract
According to a common recurring analysis approach, most studies have defined the present external and universal internal deficit crisis, as the result of a wrong financial deregulation appearing in most modern financial markets. Speculation pressures, relaxing policies, monitoring over banks capital and bank governance models, seem as paying a widespread role as well. On the contrary, some historical and present new behavioral viewpoints show a uniform result of new general widespread monetary mismanagement attitudes, in a global new monetary perspective. Both Western financial markets and the new European single currency creation are showing same surfacing effects, which are generally large internal national deficits, huge trade imbalances and growing unemployment rates.
The general market collapses that occurred up to the last 2008 unexpected monetary disintegration, considered firstly as the logical final effect of deep systematic crisis, as never before interlinked during the the twentieth century, has brought to a confused and contradictory row of financial irrecoverable shocks. Stemming from the monetary dissolution materialized during the First World War and never recovered, but for the short Bretton Woods interlude, the international and most of national payment systems are nowadays in a liquidity, interest rates and severe taxation single trap.
My firm belief is that what happened at the end of the last century is not the consequence of some specific well-defined deregulation or mismanagement of financial institutions and markets, neither a structural collapse of some previous deteriorated model, or a cyclical evolving of market tendencies. On the contrary, what surfaced from September 1987 to August 2008 and after, has been as well unfolding up to now as an unavoidable effect of the single monetary secular debasement and unproductive and inefficient macroeconomic policies and the disregard of minor welfare and micro-economic frontiers and boundaries inconsistent in a fast enlarging competitive world.
In 2016, the 1987-2008 global financial bubbles, from peripheral defaults or market plunges, has become the “final euro crisis." As well, the 19 countries of the EMS, issuing the single euro currency, apart from symptoms of economic stagnation and useless recurring monetary policies, acknowledged internal and external huge rigid trade unbalances. Some countries have been sliding into deficits for years, while the governing powers of the Eurozone have intervened from emergency to emergency, most deeply in Greece. In the Euro contest, Nobel Prize-winning economist Joseph E. Stiglitz (Stiglitz, 2016) has been dismantling the first hour prevailing consensus around, which affected Europe, demolishing the stronghold of austerity, and has been offering a series of discussible plans that could rescue the continent and the related parties from further depression.
Keywords
Banks; Other Depository Institutions; Finance; Internal and external deficits; International payments
Hrčak ID:
204338
URI
Publication date:
25.1.2018.
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