Modern economics provides no sound advice on how to manage an economy

Modern economic theory is complete trash, as I have noted before, but which is now also discussed here: Dismal Economics.

Although neoclassical economics relies on assumptions that should have been discarded long ago, it remains the mainstream orthodoxy. Three recent books, and one older one, help to show why its staying power should be regarded as a scandal.

Let me therefore mention my own book that deals with this ongoing scandal, a book which is now available as a paperback: Classical Economic Theory and the Modern Economy. This is the short description at the link:

Economic theory reached its zenith of analytical power and depth of understanding in the middle of the nineteenth century among John Stuart Mill and his contemporaries. This book explains what took place in the ensuing Marginal Revolution and Keynesian Revolution that left economists less able to understand how economies operate. It explores the false mythology that has obscured the arguments of classical economists, providing a pathway into the theory they developed.

Modern economic theory provides no obstacle to any of the inanities that pass for public economic policy at the present time. If anything, vast oceans of public sector debt and huge increases in the stock of money are seen as in keeping with modern theory, which they largely are.

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