Heiner Flassbeck: The German and Global Malaise – from the Perspective of the Neoclassical Theory

Suddenly they are all complaining. With an enormous delay, even the professional optimists in the German media have realised that something is fundamentally wrong. Germany is once again the sick man of Europe, the British Economist notes again, pointing to the decline in GDP this year. I am surprised, however, that liberal economists, who would call themselves neoclassical, do not participate much more actively in the debate and at least contribute important aspects to a theory of the crisis. But the neoclassical authors are always immediately on the wrong track because they do not want to admit the macroeconomic implications of their own theory and consequently blame the governments for the malaise. After all, markets cannot be wrong in principle and, if they are allowed to work, always lead quickly back to equilibrium.

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