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What Marx Means Today
Author(s) -
Sinn HansWerner
Publication year - 2017
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/ecaf.12243
Subject(s) - zombie , parallels , economics , economic stagnation , keynesian economics , neoclassical economics , aggregate demand , investment (military) , rate of profit , profit (economics) , profit rate , monetary economics , macroeconomics , monetary policy , law , political science , operations management , computer security , politics , computer science
Marx made significant contributions to macroeconomics, laying the grounds for both Keynes's theory of aggregate demand and Schumpeter's theory of creative destruction. His law of the tendency of the rate of profit to fall parallels Alvin Hansen's theory of secular stagnation which has recently received much attention among scholars studying the financial crises in Japan, the US and the Eurozone. This article argues that part of the new stagnation does not result from a natural exhaustion of investment possibilities, but from an overly loose central bank monetary policy that keeps zombie banks and their zombie clients alive and blocks the emergence of new start‐up firms .