The conundrum of neoclassical economic theory and quantitative finance induced 2008 financial crisis and the great financial crisis enabled transition from cheap oil based mass-production economy to the emergence of cheap microchip enabled information economy [attention merchants’ surveillance capitalism]
Journal Title:Journal of Ekonomi
The text examines the main insights of the new sciences and disciplines, and shows how they reveal the flaws of NEWTONIAN orthodox NEOCLASSICAL ECONOMIC THEORY, in explaining and predicting the catastrophic events of the near economic history of the Unites States, and provides new ways of understanding the role of monetary policy in the emergence of information economy of ASSET MANAGER CAPITALISM. A brief history of the transition from MANAGERIAL CAPITALISM of nation states of the post-World War II institutionalized with the BRETTON WOODS AGREEMENT, to global ASSET MANAGER CAPITALISM, is presented to enlighten the emergence of CHIMERICA [China+America], and President Trump’s recent attempts to dismember it by enabling the emergence of a bipolar world - TECHNOLOGIC COLD WAR - by weaponized global interdependence. The globally interdependent techno-sphere is shown as an enabled outcome of the implementation of WASHINGTON CONCENSUS of Anglo-American ASSET MANAGER CAPITALISM, that survived a comatose near death experience in 2007-2008. The major warriors and battlegrounds of THE TECHNOLOGIC COLD WAR are identified.
The text shows how GAIA THEORY sheds new light on economic growth, how fuzzy logic affects the national accounts, how accounting systems over-value the assets of publicly traded multinational companies balance sheets, and how network theory reveals the value of relationships, and argues that the economy needs to be viewed as a complex, chaotic system, as scientists view nature, not as an equilibrium seeking NEWTONIAN construct