The political economy of complexity: The case of cyber-communism

Moreno-Casas, Vicente; Espinosa, Víctor I.; Wang, William Hongsong

doi:10.1016/j.jebo.2022.10.042

Cited by 7 publications

(3 citation statements)

References 42 publications

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“…4 Alternative explanations of the 1973 recession include the intervention of the United States government or the destruction of the Cybersyn (cybernetic synergy) project (Espinosa, 2021;Kornbluh & Block, 2020). However, the Allende government had the primary responsibility for causing the 1973 recession by promoting aggressive fiscal dominance, disregarding the theoretical and practical problems of Keynesian and Marxist policies (see Moreno-Casas et al, 2022;Newman, 2020;Vial, 2005). 5 The 'Indigence Line' seeks to establish whether households have sufficient income to cover a food basket capable of satisfying a minimum threshold of energy and protein needs.…”

Section: Discussionmentioning

confidence: 99%

The political economy of fiscal dominance: Evidence from the Chilean government of Salvador Allende

Espinosa,

Cueva

2024

Economic Affairs

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This article examines the political economy of fiscal dominance during the Chilean government (1970–73) of Salvador Allende. Fiscal dominance appears when the monetary authority complies with the fiscal authority's demand to buy treasury bonds and monetise the deficit. It is argued that persistent fiscal dominance is inflationary, especially without robust fiscal and monetary rules. The Allende government financed the deficit with present taxes, debt (future taxes) and monetary issuance (inflation tax), causing the crowding‐out effect and, together with other policies such as expropriation and price controls, collapsed the demand for money, triggering hyperinflation. The lessons of Chile clarify the fiscal trigger of the inflation, stagnation, and widespread poverty that has affected Latin American countries in recent decades.

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Section: Discussionmentioning

confidence: 99%

The political economy of fiscal dominance: Evidence from the Chilean government of Salvador Allende

Espinosa,

Cueva

2024

Economic Affairs

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“…The basic assertion is that the Austrian arguments remain “just as relevant today” (Boettke & Candela, 2023, p. 44), while modern socialists “confuse the science of technology with the science of economics” (Lambert et al, 2023, p. 301). This position has been augmented by a “complexity” perspective (Moreno‐Casas et al, 2022, p. 567), as well as by emphasis on the pivotal function of entrepreneurship, which, it is said, cannot be performed by intelligent machines (Phelan, 2020).…”

Section: The State Of the Debatementioning

confidence: 99%

The ‘means’ and the ‘ends’ of economic calculation: The missing aspect of an epochal dispute

Trubnikov

2024

Economic Affairs

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Current technological advances have revived the old socialist calculation debate. While the arguments on the socialist side appear to be backed by exciting technological developments, the pro‐market camp still mainly relies on the classical thinking of the Austrian school. A reasonable way to reinvigorate the free‐market thesis is to look at the ends of economic calculations, intentionally overlooked during the classical period of the debate. A valuable supplement to the contemporary pro‐market position could be found in the ordoliberal vision that emphasised the interdependence of various spheres and the power problem.

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“…An individual first needs the approval of others to express himself, but those others could not consent without first having theirs, and so on. Any communist attempt will automatically turn into a class government, which will control the property of others, returning to the first alternative (Moreno-Casas et al 2022). The terms "social property" or "communal property" can be better understood as "property of the political oligarchy".…”

Section: Ethics Of Private Propertymentioning

confidence: 99%

The Ethics of Fractional-Reserve Banking System: A Private Property Rights Approach

Espinosa,

Alonso-Neira,

Huerta de Soto

2023

Economies

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It is generally stated that the fractional-reserve banking system (FRBS) is consistent with sustainable economic growth and development. While it assumes that depositors will not be a joint demand who will claim all their money simultaneously, it supposes that a monetary aggregate greater than the monetary base will not harm economic performance. However, the FRBS’s call to central banks casts doubt on the sustainability argument and its ethical support. This article explores the FRBS from the ethics of private property, proving a radically different course to promote sustainable economic growth and development. After reviewing and discussing the ethics of private property for the FRBS and its call for central banks, the case of fiat inflation and business cycles clarifies the narrow relationship between ethics and sustainability. These findings are applied to some modern ethical dilemmas around the FRBS, proving novel avenues for policy reform and research opportunities.

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The political economy of complexity: The case of cyber-communism

Cited by 7 publications

References 42 publications

The political economy of fiscal dominance: Evidence from the Chilean government of Salvador Allende

The political economy of fiscal dominance: Evidence from the Chilean government of Salvador Allende

The ‘means’ and the ‘ends’ of economic calculation: The missing aspect of an epochal dispute

The Ethics of Fractional-Reserve Banking System: A Private Property Rights Approach

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