Philip Pilkington: Monetary Policy and Metaphysics – How Economists Try to Naturalise Terrible Policies and Disappear Into Their Own Theories

Yves here. Philip Pilkington makes an interesting argument in this post, namely, that the method preferred among mainstream economists for managing the economy encourages investors to speculate in financial instruments rather than invest in real economy assets and projects.

Naked Capitalism
Monetary Policy and Metaphysics – How Economists Try to Naturalise Terrible Policies and Disappear Into Their Own Theories
Philip Pilkington

Rent-seeking has begun to replace productive contribution as the driver of GDP as shown by the increasing share of the financial sector and the declining share of manufacturing and industry. As Michael Hudson would say, finance capital is replacing productive capital.